Research Reports

Key takeaways

Revenue grew 10.0% to $429.6M, led by Transit segment revenue increase of $17.3M due to higher yield, partially offset by contract changes.

Operating income surged 302.2% to $55.9M, with operating margin expanding to 13.0% on revenue growth and cost control.

Net income swung to $19.1M from a loss of $20.6M, with diluted EPS of $0.11 versus -$0.14, driven by Transit improvement.

Operating cash flow more than doubled to $75.3M; free cash flow of $51.2M funded capital expenditures of $24.1M and dividends.

Full analysis

Transit Segment Drives Revenue Acceleration

Profitability Transformation: From Loss to Profit

Cash Flow Strength Supports Capital Allocation

Strategic Investments and Outlook

Management expects to realize cost savings benefits from restructuring plans within selling, general, and administrative expenses. The company continues to invest in technology, including capitalizing software costs when management authorizes and commits funding and it is probable the project will be completed. Funding for long-term cash needs is expected to come from cash on hand, operating cash flows, debt and equity issuances, and borrowings under the Revolving Credit Facility or other credit facilities. In July 2025, the FASB issued new guidance on developing reasonable and supportable forecasts for estimating expected credit losses, which the company will adopt as required.