Onterris Reports First Quarter Results and Reiterates Full-Year 2026 Guidance
First Quarter 2026 Highlights (comparisons to first quarter 2025)
-
Revenue of
$168.5 million , a$9.3 million decrease primarily due to lower emergency response revenue -
Net loss and net loss per diluted share attributable to common stockholders (LPS) improved to
$12.7 million and$0.35 , respectively, compared to$19.4 million and$0.64 , respectively due to operating efficiency -
Adjusted Net Income1 and Diluted Adjusted Net Income per share1 (Adj EPS1) were
$4.6 million and$0.12 , respectively, compared to$5.8 million and$0.07 , respectively -
Consolidated Adjusted EBITDA1 of
$17.8 million , a$1.2 million decrease primarily due to lower emergency response revenue - Consolidated Adjusted EBITDA1 as a percentage of revenue of 10.6%
-
$(11.6) million of operating cash flow and$(17.2) million of Free cash flow1, primarily due to higher bonus payments for outperformance in 2025 -
2.8x leverage as of
March 31, 2026
Full-Year 2026 Guidance Reiterated, Provides Second Quarter Outlook
-
2026 Consolidated Adjusted EBITDA1 guidance range of
$125.0 million to$130.0 million is unchanged and represents approximately 10% growth at the midpoint compared to full-year 2025. This Consolidated Adjusted EBITDA1 outlook does not include any benefit from future acquisitions. -
2026 revenue guidance range of
$840.0 million to$900.0 million is unchanged and represents approximately 8% organic growth at the midpoint compared to full-year 2025 supported by recent awards and visibility into our project pipeline. This full-year revenue range includes expected annual emergency response revenue of$50.0 million to$70.0 million . This revenue outlook does not include any benefit from future acquisitions. - 2026 guidance expectations include Consolidated Adjusted EBITDA1 as a percentage of revenue of approximately 15% at the midpoint of the above 2026 revenue and Consolidated Adjusted EBITDA1 ranges, an approximately 100 basis-point expansion as compared to 2025.
-
Second quarter 2026 revenue is expected in the range of
$190 million to$210 million . Second quarter 2026 Consolidated Adjusted EBITDA1 as a percentage of revenue is expected in the range of 16% to 18% at the midpoint of the revenue range. - The Company is committed to converting at least 60% of its annual Consolidated Adjusted EBITDA1 to operating cash flow in 2026.
- The Company plans to restart smaller, bolt-on and highly accretive acquisitions over the course of 2026, subject to valuation, capital allocation priorities and leverage.
Brand Announcement and Segment Realignment
-
On
April 17, 2026 ,Montrose Environmental Group, Inc. rebranded toOnterris , Inc. - Beginning in the first quarter of 2026, the Company realigned its reportable segments to reflect updates made to the organizational structure and operating model. As a result of the reporting segment realignment, the Company's Assessment, Permitting and Response and Remediation and Reuse segments were aggregated into a newly created Consulting and Treatment segment. The Company's Measurement and Analysis and corporate segments were not affected by the realignment.
Onterris President and Chief Executive Officer,
First Quarter 2026 Results
Revenue in the first quarter of 2026 was
Consulting and Treatment segment revenue was
Measurement and Analysis segment revenue was
Loss from operations in the first quarter of 2026 improved primarily due to higher margin in the Consulting and Treatment segment as a result of project mix, continued cost discipline, losses in the prior year period related to our renewables business and a decrease of
Adjusted Net Income1 and Adj EPS1 in the first quarter of 2026 were
Consolidated Adjusted EBITDA1 in the first quarter of 2026 was
Operating Cash Flow, Liquidity and Capital Resources
Net cash used in operating activities for the quarter ended
As of
| __________________________ | ||
|
1Consolidated Adjusted EBITDA, Adjusted Net Income (Loss), Diluted Adjusted Net Income (Loss) per share, and Free cash flow are non-GAAP measures. See the appendix to this release for a discussion of these measures, including how they are calculated and the reasons why we believe they provide useful information to investors, and a reconciliation for historical periods to the most directly comparable GAAP measures. |
Webcast and Conference Call
The Company will host a webcast and conference call on
About Onterris
Onterris is a global environmental solutions company partnering with organizations to solve complex challenges where environmental pressures, regulatory expectations and operational risks intersect. Guided by our mission to advance the way of life without compromising the integrity of our environment, we believe environmental responsibility and human progress are fundamentally connected. Our scientists, engineers, field teams and consultants apply systems thinking that unites science, data and practical expertise to deliver solutions that strengthen our clients’ resilience, mitigate risk and help protect the air, water and soil that sustain communities, while uncovering responsible paths forward for planet and progress. For more information, visit Onterris.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may be identified by the use of words such as “intend,” “expect”, and “may”, and other similar expressions that predict or indicate future events or that are not statements of historical matters. Forward-looking statements are based on current information available at the time the statements are made and on management’s reasonable belief or expectations with respect to future events, and are subject to risks and uncertainties, many of which are beyond the Company’s control, that could cause actual performance or results to differ materially from the belief or expectations expressed in or suggested by the forward-looking statements. Additional factors or events that could cause actual results to differ may also arise from time to time, and the Company cannot predict all of them. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update any forward-looking statement to reflect future events, developments or otherwise, except as may be required by applicable law. Investors are referred to the Company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
(In thousands, except per share data) (Unaudited) |
||||||||
|
|
|
Three Months Ended |
|
|||||
|
|
|
2026 |
|
|
2025 |
|
||
|
Revenues |
|
$ |
168,518 |
|
|
$ |
177,834 |
|
|
Cost of revenues (exclusive of depreciation and amortization shown below) |
|
|
101,468 |
|
|
|
108,406 |
|
|
Selling, general and administrative expense |
|
|
61,322 |
|
|
|
66,232 |
|
|
Fair value changes in business acquisition contingencies |
|
|
(838 |
) |
|
|
477 |
|
|
Depreciation and amortization |
|
|
12,629 |
|
|
|
13,294 |
|
|
Loss from operations |
|
|
(6,063 |
) |
|
|
(10,575 |
) |
|
Other income (expense), net |
|
|
1,142 |
|
|
|
(848 |
) |
|
Interest expense, net |
|
|
(5,466 |
) |
|
|
(5,065 |
) |
|
Total other income (expense), net |
|
|
(4,324 |
) |
|
|
(5,913 |
) |
|
Loss before expense from income taxes |
|
|
(10,387 |
) |
|
|
(16,488 |
) |
|
Income tax expense |
|
|
2,303 |
|
|
|
2,871 |
|
|
Net loss |
|
$ |
(12,690 |
) |
|
$ |
(19,359 |
) |
|
|
|
|
|
|
|
|
||
|
Equity adjustment from foreign currency translation |
|
|
107 |
|
|
|
(353 |
) |
|
Comprehensive loss |
|
|
(12,583 |
) |
|
|
(19,712 |
) |
|
|
|
|
|
|
|
|
||
|
Weighted average common shares outstanding |
|
|
|
|
|
|
||
|
Basic |
|
|
36,045 |
|
|
|
34,502 |
|
|
Diluted |
|
|
36,045 |
|
|
|
34,502 |
|
|
Net loss per share attributable to common stockholders |
|
|
|
|
|
|
||
|
Basic |
|
$ |
(0.35 |
) |
|
$ |
(0.64 |
) |
|
Diluted |
|
$ |
(0.35 |
) |
|
$ |
(0.64 |
) |
|
Net loss attributable to common stockholders |
|
|
|
|
|
|
||
|
Net loss |
|
$ |
(12,690 |
) |
|
$ |
(19,359 |
) |
|
Convertible and redeemable series A-2 preferred stock dividend |
|
|
— |
|
|
|
(2,750 |
) |
|
Net loss attributable to common stockholders |
|
$ |
(12,690 |
) |
|
$ |
(22,109 |
) |
|
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (In thousands, except share data) (Unaudited) |
||||||||
|
|
|
|
|
|
|
|
||
|
|
|
2026 |
|
|
2025 |
|
||
|
Assets |
|
|
|
|
|
|
||
|
Current assets |
|
|
|
|
|
|
||
|
Cash, cash equivalents and restricted cash |
|
$ |
10,046 |
|
|
$ |
11,223 |
|
|
Accounts receivable, net |
|
|
117,613 |
|
|
|
155,380 |
|
|
Contract assets |
|
|
65,799 |
|
|
|
58,831 |
|
|
Prepaid and other current assets |
|
|
23,186 |
|
|
|
14,959 |
|
|
Total current assets |
|
|
216,644 |
|
|
|
240,393 |
|
|
Non-current assets |
|
|
|
|
|
|
||
|
Property and equipment, net |
|
|
66,059 |
|
|
|
63,853 |
|
|
Operating lease right-of-use asset, net |
|
|
35,086 |
|
|
|
36,560 |
|
|
Finance lease right-of-use asset, net |
|
|
34,670 |
|
|
|
37,595 |
|
|
|
|
|
466,563 |
|
|
|
466,786 |
|
|
Other intangible assets, net |
|
|
119,763 |
|
|
|
126,383 |
|
|
Other assets |
|
|
9,238 |
|
|
|
9,726 |
|
|
Total assets |
|
$ |
948,023 |
|
|
$ |
981,296 |
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
||
|
Current liabilities |
|
|
|
|
|
|
||
|
Accounts payable and other accrued liabilities |
|
$ |
56,595 |
|
|
$ |
71,778 |
|
|
Accrued payroll and benefits |
|
|
25,749 |
|
|
|
52,773 |
|
|
Business acquisitions contingent consideration, current |
|
|
6,942 |
|
|
|
14,883 |
|
|
Current portion of operating lease liabilities |
|
|
10,622 |
|
|
|
10,735 |
|
|
Current portion of finance lease liabilities |
|
|
6,472 |
|
|
|
6,602 |
|
|
Current portion of long-term debt |
|
|
11,251 |
|
|
|
11,230 |
|
|
Total current liabilities |
|
|
117,631 |
|
|
|
168,001 |
|
|
Non-current liabilities |
|
|
|
|
|
|
||
|
Business acquisitions contingent consideration, long-term |
|
|
1,858 |
|
|
|
2,755 |
|
|
Other non-current liabilities |
|
|
6,424 |
|
|
|
7,088 |
|
|
Deferred tax liabilities, net |
|
|
21,861 |
|
|
|
21,817 |
|
|
Operating lease liability, net of current portion |
|
|
26,865 |
|
|
|
28,215 |
|
|
Finance lease liability, net of current portion |
|
|
23,154 |
|
|
|
25,180 |
|
|
Long-term debt, net of deferred financing fees |
|
|
310,139 |
|
|
|
277,065 |
|
|
Total liabilities |
|
$ |
507,932 |
|
|
$ |
530,121 |
|
|
Commitments and contingencies |
|
|
|
|
|
|
||
|
Stockholders’ equity: |
|
|
|
|
|
|
||
|
Common stock, |
|
|
— |
|
|
|
— |
|
|
Additional paid-in-capital |
|
|
739,425 |
|
|
|
727,927 |
|
|
Accumulated deficit |
|
|
(286,203 |
) |
|
|
(273,513 |
) |
|
Accumulated other comprehensive loss |
|
|
(3,132 |
) |
|
|
(3,239 |
) |
|
|
|
|
(9,999 |
) |
|
|
— |
|
|
Total stockholders’ equity |
|
|
440,091 |
|
|
|
451,175 |
|
|
Total liabilities and Stockholders’ Equity |
|
$ |
948,023 |
|
|
$ |
981,296 |
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
||||||||
|
|
|
For the Three Months Ended |
|
|||||
|
|
|
2026 |
|
|
2025 |
|
||
|
Operating activities: |
|
|
|
|
|
|
||
|
Net loss |
|
$ |
(12,690 |
) |
|
$ |
(19,359 |
) |
|
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |
|
|
|
|
|
|
||
|
Provision (recovery) for credit loss |
|
|
(612 |
) |
|
|
407 |
|
|
Depreciation and amortization |
|
|
12,629 |
|
|
|
13,294 |
|
|
Non-cash leases expense |
|
|
2,870 |
|
|
|
3,085 |
|
|
Stock-based compensation expense |
|
|
9,073 |
|
|
|
13,723 |
|
|
Fair value changes in financial instruments |
|
|
(1,131 |
) |
|
|
308 |
|
|
Write off of deferred financing costs |
|
|
— |
|
|
|
908 |
|
|
Deferred income taxes |
|
|
(1,710 |
) |
|
|
4,174 |
|
|
Other operating activities, net |
|
|
(887 |
) |
|
|
1,354 |
|
|
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
|
|
|
||
|
Accounts receivable and contract assets |
|
|
32,527 |
|
|
|
10,358 |
|
|
Prepaid expenses and other current assets |
|
|
(6,519 |
) |
|
|
(5,473 |
) |
|
Accounts payable and other accrued liabilities |
|
|
(15,672 |
) |
|
|
(5,637 |
) |
|
Accrued payroll and benefits |
|
|
(27,024 |
) |
|
|
(8,622 |
) |
|
Change in operating leases |
|
|
(2,923 |
) |
|
|
(3,016 |
) |
|
Other assets |
|
|
432 |
|
|
|
— |
|
|
Net cash (used in) provided by operating activities |
|
$ |
(11,637 |
) |
|
$ |
5,504 |
|
|
Investing activities: |
|
|
|
|
|
|
||
|
Purchases of property and equipment |
|
|
(5,667 |
) |
|
|
(3,154 |
) |
|
Purchase price true ups |
|
|
— |
|
|
|
(562 |
) |
|
Proceeds from other activities |
|
|
142 |
|
|
|
11 |
|
|
Net cash used in investing activities |
|
$ |
(5,525 |
) |
|
$ |
(3,705 |
) |
|
Financing activities: |
|
|
|
|
|
|
||
|
Proceeds from revolving line of credit |
|
|
140,400 |
|
|
|
106,945 |
|
|
Repayment of the revolving line of credit |
|
|
(104,258 |
) |
|
|
(97,246 |
) |
|
Repayment of aircraft loan |
|
|
(300 |
) |
|
|
(280 |
) |
|
Proceeds from term loan |
|
|
— |
|
|
|
200,000 |
|
|
Repayment of term loan |
|
|
(2,500 |
) |
|
|
(189,219 |
) |
|
Payment of contingent consideration and other purchase price true ups |
|
|
(8,000 |
) |
|
|
(297 |
) |
|
Repayment of finance leases |
|
|
(1,826 |
) |
|
|
(1,563 |
) |
|
Payments of deferred financing costs |
|
|
— |
|
|
|
(2,189 |
) |
|
Proceeds from issuance of common stock for exercised stock options |
|
|
2,425 |
|
|
|
61 |
|
|
Proceeds from building sale leaseback |
|
|
— |
|
|
|
2,500 |
|
|
Dividend payment to the series A-2 stockholders |
|
|
— |
|
|
|
(2,750 |
) |
|
Repurchases of common stock |
|
|
(9,999 |
) |
|
|
— |
|
|
Net cash provided by financing activities |
|
$ |
15,942 |
|
|
$ |
15,962 |
|
|
Change in cash, cash equivalents and restricted cash |
|
|
(1,220 |
) |
|
|
17,761 |
|
|
Foreign exchange impact on cash balance |
|
|
43 |
|
|
|
(420 |
) |
|
Cash, cash equivalents and restricted cash: |
|
|
|
|
|
|
||
|
Beginning of year |
|
|
11,223 |
|
|
|
12,935 |
|
|
End of period |
|
$ |
10,046 |
|
|
$ |
30,276 |
|
|
SEGMENT REVENUES AND ADJUSTED EBITDA (In thousands) (Unaudited) |
||||||||||||||||
|
|
|
Three Months Ended |
|
|||||||||||||
|
|
|
2026 |
|
|
2025 |
|
||||||||||
|
|
|
Segment Revenues |
|
|
Segment Adjusted EBITDA(1) |
|
|
Segment Revenues |
|
|
Segment Adjusted EBITDA(1) |
|
||||
|
Consulting and Treatment |
|
$ |
114,587 |
|
|
$ |
20,133 |
|
|
$ |
118,804 |
|
|
$ |
16,499 |
|
|
Measurement and Analysis |
|
|
53,931 |
|
|
|
9,937 |
|
|
|
59,030 |
|
|
|
13,773 |
|
|
Total Reportable Segments |
|
$ |
168,518 |
|
|
$ |
30,070 |
|
|
$ |
177,834 |
|
|
$ |
30,272 |
|
| _____________________________ | ||
|
(1) |
To evaluate segment profit, the Company’s chief operating decision maker reviews Segment Adjusted EBITDA as a basis for making the decisions to allocate resources and assess performance. |
|
Non-GAAP Financial Information
In addition to our results under GAAP, in this release we also present certain other supplemental financial measures of financial performance that are not required by, or presented in accordance with, GAAP, including, Consolidated Adjusted EBITDA, Adjusted Net Income and Basic and Diluted Adj EPS. We calculate Consolidated Adjusted EBITDA as net income (loss) before interest expense, income tax expense (benefit) and depreciation and amortization, adjusted for the impact of certain other items, including stock-based compensation expense and acquisition-related costs, as set forth in greater detail in the table below. We calculate Adjusted Net Income as net income (loss) before amortization of intangible assets, stock-based compensation expense, fair value changes to financial instruments and contingent earnouts, discontinued specialty lab, and other gain or losses, as set forth in greater detail in the table below. Basic Adj EPS represents Adjusted Net Income attributable to stockholders divided by the weighted average number of shares of common stock outstanding during the applicable period. Diluted Adj EPS represents Adjusted Net Income attributable to stockholders divided by the fully diluted number of shares of common stock outstanding during the applicable period. Free cash flow is defined as the sum of net cash provided by (used in) operating activities and net cash used in investing activities, adjusted for the impact of certain other items, including contingent consideration and other purchase price true ups, minority investments, cash paid for acquisitions, net of cash acquired; and dividend payments to the Series A-2 holders.
Consolidated Adjusted EBITDA is one of the primary metrics used by management to evaluate our financial performance and compare it to that of our peers, evaluate the effectiveness of our business strategies, make budgeting and capital allocation decisions and in connection with our executive incentive compensation. Adjusted Net Income and Basic and Diluted Adj EPS are useful metrics to evaluate ongoing business performance after interest and tax. These measures are also frequently used by analysts, investors and other interested parties to evaluate companies in our industry. Further, we believe they are helpful in highlighting trends in our operating results because they allow for more consistent comparisons of financial performance between periods by excluding gains and losses that are non-operational in nature or outside the control of management, and, in the case of Consolidated Adjusted EBITDA, by excluding items that may differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate and capital investments. Free cash flow is used by management as one of the means by which it assesses cash generation in excess of ongoing capital needs of the business.
These non-GAAP measures do, however, have certain limitations and should not be considered as an alternative to net income (loss), earnings (loss) per share or any other performance measure derived in accordance with GAAP. Our presentation of Consolidated Adjusted EBITDA, Adjusted Net Income and Basic and Diluted Adj EPS should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items for which we may make adjustments. In addition, Consolidated Adjusted EBITDA, Adjusted Net Income and Basic and Diluted Adj EPS may not be comparable to similarly titled measures used by other companies in our industry or across different industries, and other companies may not present these or similar measures. Management compensates for these limitations by using these measures as supplemental financial metrics and in conjunction with our results prepared in accordance with GAAP. We encourage investors and others to review our financial information in its entirety, not to rely on any single measure and to view Consolidated Adjusted EBITDA, Adjusted Net Income and Basic and Diluted Adj EPS in conjunction with the related GAAP measures. Free cash flow has certain limitations and should not be considered as an alternative to or in isolation from net cash provided by (used in) operating activities or any other measure of cash flow generation calculated in accordance with GAAP. In evaluating Free cash flow, you should be aware that Free cash flow does not represent residual cash flow available for discretionary expenditures.
Additionally, we have provided estimates regarding Consolidated Adjusted EBITDA for 2026. These projections account for estimates of revenue, operating margins and corporate and other costs. However, we cannot reconcile our projection of Consolidated Adjusted EBITDA to net income (loss), the most directly comparable GAAP measure, without unreasonable efforts because of the unpredictable or unknown nature of certain significant items excluded from Consolidated Adjusted EBITDA and the resulting difficulty in quantifying the amounts thereof that are necessary to estimate net income (loss). Specifically, we are unable to estimate for the future impact of certain items, including income tax (expense) benefit, stock-based compensation expense, and fair value changes. We expect the variability of these items could have a significant impact on our reported GAAP financial results.
In this release we also reference our organic growth. We define organic growth as the change in revenues excluding revenues from i) our environmental emergency response business, ii) acquisitions for the first twelve months following the date of acquisition, and iii) businesses held for sale, disposed of or discontinued. Management uses organic growth as one of the means by which it assesses our results of operations. Organic growth is not, however, a measure of revenue growth calculated in accordance with
In a given reporting period, when we refer to revenue changes driven by acquisitions, we are referring to the revenue contribution from any acquisition from its closing date through the first 12 months of that acquisition, at which point any subsequent contribution therefrom would be organic.
|
Reconciliation of Net Loss to Adjusted Net Income (In thousands, except per share data) (Unaudited) |
||||||||
|
|
|
Three Months Ended |
|
|||||
|
|
|
2026 |
|
|
2025 |
|
||
|
Net loss |
|
$ |
(12,690 |
) |
|
$ |
(19,359 |
) |
|
Amortization of intangible assets(1) |
|
|
6,674 |
|
|
|
8,390 |
|
|
Stock-based compensation(2) |
|
|
9,073 |
|
|
|
13,723 |
|
|
Acquisition costs(3) |
|
|
81 |
|
|
|
711 |
|
|
Fair value changes in financial instruments(4) |
|
|
(710 |
) |
|
|
1,216 |
|
|
Fair value changes in business acquisition contingencies(5) |
|
|
(838 |
) |
|
|
477 |
|
|
Non-recurring rebranding expenses |
|
|
1,101 |
|
|
|
— |
|
|
Other losses and expenses(6) |
|
|
1,408 |
|
|
|
1,032 |
|
|
Tax effect of adjustments(7) |
|
|
479 |
|
|
|
(344 |
) |
|
Adjusted Net Income |
|
$ |
4,578 |
|
|
$ |
5,846 |
|
|
Preferred dividends Series A-2 |
|
|
— |
|
|
|
(2,750 |
) |
|
Adjusted Net Income attributable to stockholders |
|
$ |
4,578 |
|
|
$ |
3,096 |
|
|
|
|
|
|
|
|
|
||
|
Net Loss per share attributable to stockholders |
|
$ |
(0.35 |
) |
|
$ |
(0.64 |
) |
|
Basic Adjusted Net Income per share(8) |
|
$ |
0.13 |
|
|
$ |
0.09 |
|
|
Diluted Adjusted Net Income per share(9) |
|
$ |
0.12 |
|
|
$ |
0.07 |
|
|
|
|
|
|
|
|
|
||
|
Weighted average common shares outstanding |
|
|
36,045 |
|
|
|
34,502 |
|
|
Fully diluted shares |
|
|
39,310 |
|
|
|
46,086 |
|
| _____________________________ | ||
|
(1) |
Represents amortization of intangible assets. |
|
|
(2) |
Represents non-cash stock-based compensation expenses related to option awards issued to employees and restricted stock grants issued to directors and selected employees. |
|
|
(3) |
Includes financial and tax diligence, consulting, legal, valuation, accounting and travel costs and acquisition-related incentives related to our acquisition activity, including direct costs of integration. |
|
|
(4) |
Amounts in 2026 relate to the change in fair value of the interest rate swap instruments. Amounts in 2025 relate to the change in fair value of the interest rate swap instruments and the embedded derivative attached to the Series A-2 preferred stock. |
|
|
(5) |
Amounts reflect the difference between the expected settlement value of acquisition related earn-out payments at the time of the closing of acquisitions and the expected (or actual) value of earn-outs at the end of the relevant period. |
|
|
(6) |
Amounts in 2026 are primarily comprised of IT migration costs. Amounts in 2025 are primarily comprised of non-recurring costs incurred to restructure the Company's renewable energy business, third party expenses associated with the independent review and analysis of assertions in a short seller report regarding the Company and costs to centralize certain back-office functions. |
|
|
(7) |
The Company applied the estimated effective tax rate on portions of the adjustments related to our significant foreign entities, and determined the US portion of the adjustments do not have any tax impact since we are in a full deferred tax asset valuation allowance as of |
|
|
(8) |
Represents Adjusted Net Income attributable to stockholders divided by the weighted average number of shares of common stock outstanding. |
|
|
(9) |
Represents Adjusted Net Income attributable to stockholders divided by fully diluted number of shares of common stock. |
|
|
Reconciliation of Net Loss to Consolidated Adjusted EBITDA (In thousands) (Unaudited) |
||||||||
|
|
|
Three Months Ended |
|
|||||
|
|
|
2026 |
|
|
2025 |
|
||
|
Net loss |
|
$ |
(12,690 |
) |
|
$ |
(19,359 |
) |
|
Interest expense |
|
|
5,466 |
|
|
|
5,065 |
|
|
Income tax expense |
|
|
2,303 |
|
|
|
2,871 |
|
|
Depreciation and amortization |
|
|
12,629 |
|
|
|
13,294 |
|
|
EBITDA |
|
$ |
7,708 |
|
|
$ |
1,871 |
|
|
Stock-based compensation(1) |
|
|
9,073 |
|
|
|
13,723 |
|
|
Acquisition costs(2) |
|
|
81 |
|
|
|
711 |
|
|
Fair value changes in financial instruments(3) |
|
|
(710 |
) |
|
|
1,216 |
|
|
Fair value changes in business acquisition contingencies(4) |
|
|
(838 |
) |
|
|
477 |
|
|
Non-recurring rebranding expenses |
|
|
1,101 |
|
|
|
— |
|
|
Other losses and expenses(5) |
|
|
1,408 |
|
|
|
1,032 |
|
|
Consolidated Adjusted EBITDA |
|
$ |
17,823 |
|
|
$ |
19,030 |
|
| _____________________________ | ||
|
(1) |
Represents non-cash stock-based compensation expenses related to option awards issued to employees and restricted stock grants issued to directors and selected employees. |
|
|
(2) |
Includes financial and tax diligence, consulting, legal, valuation, accounting and travel costs and acquisition-related incentives related to our acquisition activity, including direct costs of integration. |
|
|
(3) |
Amounts in 2026 relate to the change in fair value of the interest rate swap instruments. Amounts in 2025 relate to the change in fair value of the interest rate swap instruments and the embedded derivative attached to the Series A-2 preferred stock. |
|
|
(4) |
Reflects the difference between the expected settlement value of acquisition related earn-out payments at the time of the closing of acquisitions and the expected (or actual) value of earn-outs at the end of the relevant period. |
|
|
(5) |
Amounts in 2026 are primarily comprised of IT migration costs. Amounts in 2025 are primarily comprised of non-recurring costs incurred to restructure the Company's renewable energy business, third party expenses associated with the independent review and analysis of assertions in a short seller report regarding the Company and costs to centralize certain back-office functions. |
|
|
Reconciliation of (In thousands) (Unaudited) |
||||||||
|
|
|
For the Three Months Ended |
|
|||||
|
|
|
2026 |
|
|
2025 |
|
||
|
Net cash (used in) provided by operating activities |
|
$ |
(11,637 |
) |
|
$ |
5,504 |
|
|
Net cash used in investing activities |
|
|
(5,525 |
) |
|
|
(3,705 |
) |
|
Adjustments to Net cash used in investing activities: |
|
|
|
|
|
|
||
|
Purchase price true ups(1) |
|
|
— |
|
|
|
562 |
|
|
Dividend payment to the series A-2 stockholders |
|
|
— |
|
|
|
(2,750 |
) |
|
Free cash flow |
|
$ |
(17,162 |
) |
|
$ |
(389 |
) |
| _____________________________ | ||
|
(1) |
Contingent consideration and other post-closing adjustments to the purchase price to reflect differences between estimated and actual closing balance sheet amounts (e.g., working capital, cash, or debt) as defined in the purchase agreement. |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20260506868107/en/
Investor Relations
Senior Vice President, Investor Relations &
(949) 988-3383
ir@onterris.com
Media Relations
Senior Vice President,
(214) 514-9809
pr@onterris.com
Source: Onterris ONT
