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SEC filingTeam, Inc. reported FY 2025 revenues of $896.5 million, a 5.2% increase from $852.3 million in FY 2024. Despite revenue growth, the company incurred a net loss of $49.2 million, widening from a $38.3 million loss in the prior year. Operating income was $14.1 million, up from $10.1 million, but was offset by significant interest expense of $44.7 million and a $13.1 million loss on debt extinguishment. The company generated negative operating cash flow of $11.3 million, primarily due to net loss and changes in working capital. Key forward-looking items include significant debt obligations, reliance on cash flows to meet debt service, and strategic initiatives to improve margins and cash flow.
Team, Inc. reported FY 2025 revenues of $896.5 million, a 5.2% increase from $852.3 million in FY 2024. The company generated operating income of $14.1 million, up from $10.1 million in the prior year. However, significant interest expense of $44.7 million and a $13.1 million loss on debt extinguishment resulted in a loss before income taxes of $46.6 million. After a $2.6 million provision for income taxes, net loss was $49.2 million, compared to a net loss of $38.3 million in FY 2024. Net loss attributable to common shareholders was $52.7 million, or $12.00 per basic and diluted share, compared to $38.3 million, or $8.64 per share, in the prior year.
Revenue growth was driven by both operating segments. The Inspection and Heat-Treating (IHT) segment generated $458.9 million in revenue, a 7.5% increase from $426.7 million in FY 2024. Within IHT, Non-Destructive Evaluation and Testing Services contributed $359.0 million. The Mechanical Services (MS) segment generated $437.6 million in revenue, a 2.8% increase from $425.6 million in FY 2024, with Repair and Maintenance Services contributing $426.9 million. Geographically, the United States accounted for $680.7 million (75.9%) of total revenue, Canada $76.8 million (8.6%), and other countries $139.0 million (15.5%). No single customer accounted for 10% or more of consolidated revenues.
Gross margin was $231.7 million (25.8% of revenue), compared to $223.2 million (26.2%) in FY 2024. The slight margin compression reflects a 5.2% revenue increase against a 5.7% increase in operating expenses. Selling, general and administrative expenses were $217.6 million (24.3% of revenue), up from $213.0 million (25.0%) in the prior year. Operating income margin improved to 1.6% from 1.2%. Profitability was significantly impacted by high interest expense of $44.7 million and a $13.1 million loss on debt extinguishment related to debt refinancing activities.
Net cash used in operating activities was $11.3 million, primarily due to the net loss of $49.2 million, partially offset by non-cash adjustments including $34.1 million in depreciation and amortization and $13.1 million loss on debt extinguishment. Changes in working capital used $22.5 million, mainly from decreases in other accrued liabilities and accounts payable. Net cash used in investing activities was $9.1 million for capital expenditures. Net cash provided by financing activities was $2.8 million, including $75.0 million from issuance of Series B Preferred Stock, offset by $48.0 million in debt repayments and $11.3 million in debt issuance costs. Total cash decreased by $17.4 million to $18.1 million. Total assets were $485.5 million, with current assets of $266.4 million. Total liabilities were $458.0 million, including long-term debt and finance lease obligations of $293.3 million. Shareholders' equity deficit was $24.5 million.
The company faces risks related to its significant debt levels, including $293.3 million in long-term debt and finance lease obligations. Management notes that ability to meet debt service obligations depends on future performance and cash flow generation. The company is subject to financial covenants under its credit facilities and must maintain compliance. Strategic priorities include implementing cost reduction initiatives, improving operational efficiency, and managing working capital. The company continues to focus on expanding its market presence in aerospace, defense, renewable energy, and other non-oil and gas industries to diversify revenue streams. Risk factors include sensitivity to oil and gas prices, competition for skilled technical workforce, and potential quality or safety issues that could impact customer relationships.