0001193125-26-214572
SEC filingRevenue grew 14.3% to $166.3M, reflecting continued demand across service lines, but operating income declined 6.9% to $41.4M as higher corporate infrastructure investments and occupancy expenses weighed on margins.
Revenue increased 14.3% year-over-year to $166.3 million, primarily driven by higher billing rates in the Environmental & Health segment. As noted in Management’s Discussion, this increase was partially offset by a decrease in billable hours — indicating pricing power is currently compensating for softer utilization trends in that segment.
The increase in other income, net, was primarily attributable to changes in the value of assets linked to our deferred compensation plan — a non-cash item that partially offsets related corporate expense increases. Management confirms the rise in corporate operating expenses was directly tied to this same deferred compensation asset valuation change, reinforcing the interplay between these line items.
Net cash provided by operating activities was negative at $0.98 million, compared to $7.3 million in the prior-year quarter. While no specific driver is quantified in the authoritative packet, the business context notes seasonal and timing-related factors influence working capital — particularly around payroll accruals and bonus payments — which can meaningfully affect quarterly operating cash flow without signaling underlying operational deterioration. Free cash flow, defined as operating cash flow less capital expenditures, was therefore -$3.4 million, fully attributable to the combination of this operating cash outflow and elevated infrastructure spending.