BrightView Holdings, Inc.

Previous wording

Other expense (income) consists primarily of investment gains related to investments held in Rabbi Trust.

Current wording

Other (income) expense consists primarily of investment gains related to investments held in Rabbi Trust.

Previous wording

Income tax expense (benefit) includes U.S. federal, state and local income taxes. Our effective tax rate differs from the statutory U.S. income tax rate due to the effect of state and local income taxes, tax credits and certain nondeductible expenses. Our effective tax rate may vary from quarter to quarter based on recurring and nonrecurring factors including, but not limited to, the geographical distribution of our pre-tax earnings, changes in the tax rates of different jurisdictions, the availability of tax credits and nondeductible items. Changes in judgment due to the evaluation of new information resulting in the recognition, derecognition or remeasurement of a tax position taken in a prior annual period are recognized separately in the period of the change.

Current wording

Income tax expense includes U.S. federal, state and local income taxes. Our effective tax rate differs from the statutory U.S. income tax rate due to the effect of state and local income taxes, tax credits and certain nondeductible expenses. Our effective tax rate may vary from quarter to quarter based on recurring and nonrecurring factors including, but not limited to, the geographical distribution of our pre-tax earnings, changes in the tax rates of different jurisdictions, the availability of tax credits and nondeductible items. Changes in judgment due to the evaluation of new information resulting in the recognition, derecognition or remeasurement of a tax position taken in a prior annual period are recognized separately in the period of the change.

Previous wording

This is especially true for new developments in which green space tends to play an increasingly important role. Economic conditions, including rising inflation and fuel prices, as well as rising interest rates and tariffs, have impacted and may further impact our costs and expenses, and fluctuations in labor markets, may impact our ability to identify, hire and retain employees.

Current wording

This is especially true for new developments in which green space tends to play an increasingly important role. Economic conditions, including rising inflation and fuel prices, as well as rising interest rates and tariffs, have impacted and may further impact our costs and expenses. Additionally, fluctuations in labor markets, may impact our ability to identify, hire and retain employees.

Previous wording

Gross profit for the three months ended March 31, 2025 decreased $4.5 million, or 3.0%, to $147.5 million, from $152.0 million in the 2024 period. Gross margin decreased 30 basis points, to 22.3%, in the three months ended March 31, 2025, from 22.6% in the comparable 2024 period. The decreases in gross profit was primarily driven by the decrease in Net Services revenues described above combined with increased depreciation expense.

Current wording

Gross profit for the three months ended June 30, 2025 decreased $6.7 million, or 3.8%, to $170.9 million, from $177.6 million in the 2024 period. Gross margin increased 10 basis points, to 24.1%, in the three months ended June 30, 2025, from 24.0% in the comparable 2024 period. The decreases in gross profit was primarily driven by the decrease in Net Services revenues described above combined with increased depreciation expense.

Previous wording

Selling, general and administrative expense for the three months ended March 31, 2025 decreased $6.9 million, or 5.5%, to $118.1 million, from $125.0 million in the 2024 period. As a percentage of revenue, Selling, general and administrative expense decreased 80 basis points for the three months ended March 31, 2025 to 17.8% from 18.6% in the 2024 period. The decrease was driven primarily by decreases in compensation-related costs as a result of the Company's cost management initiatives.

Current wording

Selling, general and administrative expense for the three months ended June 30, 2025 decreased $13.9 million, or 11.6%, to $106.2 million, from $120.1 million in the 2024 period. As a percentage of revenue, Selling, general and administrative expense decreased 130 basis points for the three months ended June 30, 2025 to 15.0% from 16.3% in the 2024 period. The decrease was driven primarily by a decrease in business transformation and integration costs combined with a decrease in compensation-related costs as a result of the Company's cost management initiatives.

Previous wording

Amortization expense for the three months ended March 31, 2025 decreased $1.6 million, or 18.4%, to $7.1 million from $8.7 million in the 2024 period. The decrease was principally due the decrease in the amortization of intangible assets, based on the pattern consistent with expected future cash flows calculated at the time the assets were acquired.

Current wording

Amortization expense for the three months ended June 30, 2025 decreased $1.5 million, or 17.4%, to $7.1 million from $8.6 million in the 2024 period. The decrease was principally due the decrease in the amortization of intangible assets, based on the pattern consistent with expected future cash flows calculated at the time the assets were acquired.

Previous wording

Other expense was $0.8 million for the three months ended March 31, 2025 compared to income of $0.8 million in the 2024 period. The decrease of $1.6 million was driven principally by the change in value of investments held in the Rabbi Trust and costs associated the repricing of the Company's term loan.

Current wording

Other expense was $0.7 million for the three months ended June 30, 2025 compared to income of $0.5 million in the 2024 period. The decrease of $1.2 million was driven principally by the change in value of investments held in the Rabbi Trust and costs associated the repricing of the Company's term loan.

Previous wording

Interest expense, net for the six months ended March 31, 2025 decreased $6.1 million, or 18.5%, to $26.9 million from $33.0 million in the 2024 period. The decrease was driven by lower interest expense as a result of the decrease in interest rates as a result of the repricing of our Series B Term Loans in fiscal 2024 and the decrease in the Company's long-term debt balance combined with a decrease in interest income associated with the decrease in the Company's cash and cash equivalents balance.

Current wording

Interest expense, net for the three months ended June 30, 2025 decreased $1.7 million, or 11.3%, to $13.4 million from $15.1 million in the 2024 period. The decrease was driven by lower interest expense caused by the decrease in interest rates as a result of the repricing of our Series B Term Loans in fiscal 2024 and the decrease in the Company's long-term debt balance partially offset by a decrease in interest income.

Previous wording

For the three months ended March 31, 2025, Income tax expense was $2.3 million compared to $13.3 million in the 2024 period. The decrease was primarily attributable to the impact of the nonrecurring gain on the divestiture of the U.S. Lawns subsidiary on pre-tax book income in the prior year.

Current wording

For the three months ended June 30, 2025, Income tax expense was $12.6 million compared to $9.9 million in the 2024 period. The increase was primarily attributable to the mix of pre-tax book income amongst separate state filers.

Previous wording

For the three months ended March 31, 2025, Net income was $6.4 million compared to $33.7 million in the 2024 period due to the changes noted above. Net loss as a percentage of revenue was 1.0% for the three months ended March 31, 2025 compared to 5.0% for the three months ended March 31, 2024.

Current wording

For the three months ended June 30, 2025, Net income was $32.3 million compared to $23.5 million in the 2024 period due to the changes noted above. Net income as a percentage of revenue was 4.6% for the three months ended June 30, 2025 compared to 3.2% for the three months ended June 30, 2024.

Previous wording

Adjusted EBITDA increased $8.7 million for the three months ended March 31, 2025, to $73.5 million, from $64.8 million in the 2024 period. Adjusted EBITDA as a percentage of revenue was 11.1% and 9.6% for the three months ended March 31, 2025 and 2024, respectively. The increase in Adjusted EBITDA was primarily driven by an increase of $1.2 million, or 2.2%, in Maintenance Services Segment Adjusted EBITDA, combined with an increase of $7.5 million, or 77.3%, in Development Services Segment Adjusted EBITDA, as discussed further below in Segment Results.

Current wording

Adjusted EBITDA increased $5.3 million for the three months ended June 30, 2025, to $113.2 million, from $107.9 million in the 2024 period. Adjusted EBITDA as a percentage of revenue was 16.0% and 14.6% for the three months ended June 30, 2025 and 2024, respectively. The increase in Adjusted EBITDA was primarily driven by an increase of $1.3 million, or 1.6%, in Maintenance Services Segment Adjusted EBITDA, combined with an increase of $4.0 million, or 14.5%, in Development Services Segment Adjusted EBITDA, as discussed further below in Segment Results.

Previous wording

Adjusted Net Income for the three months ended March 31, 2025 increased $4.6 million to $21.5 million, from $16.9 million in the 2024 period due to the changes noted above.

Current wording

Adjusted Net Income for the three months ended June 30, 2025 decreased $2.8 million to $45.5 million, from $48.3 million in the 2024 period due to the changes noted above.

Previous wording

Gross profit for the six months ended March 31, 2025 decreased $11.6 million, or 4.1%, to $274.3 million from $285.9 million in the 2024 period. Gross margin decreased 30 basis points, to 21.7%, in the six months ended March 31, 2025 from 22.0% in the 2024 period. The decreases in gross profit and gross margin were driven by the decrease in Net Service Revenues described above combined with increased depreciation.

Current wording

Gross profit for the nine months ended June 30, 2025 decreased $18.2 million, or 3.9%, to $445.2 million from $463.4 million in the 2024 period. Gross margin decreased 10 basis points, to 22.6%, in the nine months ended June 30, 2025 from 22.7% in the 2024 period. The decreases in gross profit and gross margin were driven by the decrease in Net Service Revenues described above combined with increased depreciation.

Previous wording

Selling, general and administrative expense for the six months ended March 31, 2025 decreased $17.6 million, or 6.9%, to $237.4 million from $255.0 million in the 2024 period. As a percentage of revenue, Selling, general and administrative expense decreased 80 basis points for the six months ended March 31, 2025 to 18.8% from 19.6% in the 2024 period. The decrease was driven primarily by decreases in compensation-related costs as a result of the Company's cost management initiatives.

Current wording

Selling, general and administrative expense for the nine months ended June 30, 2025 decreased $31.5 million, or 8.4%, to $343.5 million from $375.0 million in the 2024 period. As a percentage of revenue, Selling, general and administrative expense decreased 100 basis points for the nine months ended June 30, 2025 to 17.4% from 18.4% in the 2024 period. The decrease was driven primarily by a decrease in compensation-related costs as a result of the Company's cost management initiatives combined with a decrease in business transformation and integration costs.

Previous wording

Gain on divestiture for the three months ended March 31, 2024 was $43.9 million which consisted of the realized gain on sale and transaction related expenses from the divestiture of U.S. Lawns on January 12, 2024.

Current wording

Gain on divestiture for the nine months ended June 30, 2024 was $44.0 million which consisted of the realized gain on sale and transaction related expenses from the divestiture of U.S. Lawns on January 12, 2024.

Previous wording

Amortization expense for the six months ended March 31, 2025 decreased $3.6 million, or 19.1%, to $15.2 million from $$18.8 million in the 2024 period. The decrease was principally due the decrease in the amortization of intangible assets, based on the pattern consistent with expected future cash flows calculated at the time the assets were acquired.

Current wording

Amortization expense for the nine months ended June 30, 2025 decreased $5.1 million, or 18.6%, to $22.3 million from $27.4 million in the 2024 period. The decrease was principally due to the decrease in the amortization of intangible assets, based on the pattern consistent with expected future cash flows calculated at the time the assets were acquired.

Previous wording

Other expense was $0.7 million for the six months ended March 31, 2025 compared to other income of $1.9 million in the 2024 period. The decrease of $2.6 million was driven principally by changes in the value of investments held in the Rabbi Trust and costs associated the repricing of the Company's term loan.

Current wording

Other expense was $0.1 million for the nine months ended June 30, 2025 compared to other income of $1.5 million in the 2024 period. The decrease of $1.6 million was driven principally by changes in the value of investments held in the Rabbi Trust and costs associated the repricing of the Company's term loan.

Previous wording

Interest expense, net for the three months ended March 31, 2025 decreased $3.2 million, or 20.0%, to $12.8 million from $16.0 million in the 2024 period. The decrease was driven by lower interest expense as a result of the decrease in interest rates as a result of the repricing of our Series B Term Loans in fiscal 2024 and the decrease in the Company's long-term debt balance partially offset by a decrease in interest income associated with the decrease in the cash and cash equivalents balance.

Current wording

Interest expense, net for the nine months ended June 30, 2025 decreased $7.9 million, or 16.4%, to $40.3 million from $48.2 million in the 2024 period. The decrease was driven by lower interest expense as a result of the decrease in interest rates as a result of the repricing of our Series B Term Loans in fiscal 2024 and the decrease in the Company's long-term debt balance partially offset by an increase in finance lease interest expense and a decrease in interest income.

Previous wording

Income tax benefit for the six months ended March 31, 2025, was $1.9 million, compared to income tax expense of $7.6 million in the 2024 period. The change was primarily attributable to equity-based compensation adjustments, partially offset by changes in pre-tax book income primarily attributable to the nonrecurring gain on the divestiture of the U.S. Lawns subsidiary that occurred in the prior fiscal year.

Current wording

Income tax expense for the nine months ended June 30, 2025, was $10.7 million, compared to income tax expense of $17.5 million in the 2024 period. The change was primarily attributable to equity-based compensation adjustments, partially offset by changes in pre-tax book income primarily attributable to the nonrecurring gain on the divestiture of the U.S. Lawns subsidiary that occurred in the prior fiscal year.

Previous wording

For the six months ended March 31, 2025, net loss was $4.0 million compared to net income of $17.3 million in the 2024 period due to the changes noted above. Net loss as a percentage of revenue was 0.3% for the six months ended March 31, 2025 compared to net income as a percentage of revenue of 1.3% in the 2024 period.

Current wording

For the nine months ended June 30, 2025, net income was $28.3 million compared to net income of $40.8 million in the 2024 period due to the changes noted above. Net income as a percentage of revenue was 1.4% for the nine months ended June 30, 2025 compared to net income as a percentage of revenue of 2.0% in the 2024 period.

Previous wording

Adjusted EBITDA increased $14.1 million for the six months ended March 31, 2025 to $125.6 million from $111.5 million in the 2024 period. Adjusted EBITDA as a percentage of revenue was 10.0% and 8.6% for the six months ended March 31, 2025 and 2024, respectively. The increase in Adjusted EBITDA was primarily driven by a increase of $4.5 million, or 5.2%, in Maintenance Services Segment Adjusted EBITDA, combined with an increase of $9.6 million, or 38.4% in Development Services Segment Adjusted EBITDA, as discussed further below in Segment Results.

Current wording

Adjusted EBITDA increased $19.3 million for the nine months ended June 30, 2025 to $238.8 million from $219.5 million in the 2024 period. Adjusted EBITDA as a percentage of revenue was 12.1% and 10.8% for the nine months ended June 30, 2025 and 2024, respectively. The increase in Adjusted EBITDA was primarily driven by an increase of $5.8 million, or 3.5%, in Maintenance Services Segment Adjusted EBITDA, combined with an increase of $13.5 million, or 25.7% in Development Services Segment Adjusted EBITDA, as discussed further below in Segment Results.

Previous wording

Adjusted Net Income for the six months ended March 31, 2025 increased $7.1 million to $27.1 million from $20.0 million in the 2024 period due to the changes noted above.

Current wording

Adjusted Net Income for the nine months ended June 30, 2025 increased $4.5 million to $72.6 million from $68.1 million in the 2024 period due to the changes noted above.

Previous wording

We believe that Adjusted EBITDA, Adjusted Net Income and Adjusted EPS are helpful supplemental measures to assist us and investors in evaluating our operating results as they exclude certain items whose fluctuations from period to period do not necessarily correspond to changes in the operations of our business. Adjusted EBITDA represents net income (loss) before interest, taxes, depreciation, amortization and certain non-cash, non-recurring and other adjustment items. Adjusted Net Income is defined as net income (loss) including interest and depreciation and excluding other items used to calculate Adjusted EBITDA and further adjusted for the tax effect of these exclusions and the removal of the discrete tax items. Adjusted EPS is defined as Adjusted Net Income divided by the (i) weighted average number of common shares outstanding used in the calculation of basic earnings per share plus (ii) shares of common stock related to the Series A Preferred Stock on an as-converted basis, assumed to be converted for the entire period. We believe that the adjustments applied in presenting Adjusted EBITDA, Adjusted Net Income and Adjusted EPS are appropriate to provide additional information to investors about certain material non-cash items and about non-recurring items that we do not expect to continue at the same level in the future.

Current wording

We believe that Adjusted EBITDA, Adjusted Net Income and Adjusted EPS are helpful supplemental measures to assist us and investors in evaluating our operating results as they exclude certain items whose fluctuations from period to period do not necessarily correspond to changes in the operations of our business. Adjusted EBITDA represents net income before interest, taxes, depreciation, amortization and certain non-cash, non-recurring and other adjustment items. Adjusted Net Income is defined as net income including interest and depreciation and excluding other items used to calculate Adjusted EBITDA and further adjusted for the tax effect of these exclusions and the removal of the discrete tax items. Adjusted EPS is defined as Adjusted Net Income divided by the (i) weighted average number of common shares outstanding used in the calculation of basic earnings per share plus (ii) shares of common stock related to the Series A Preferred Stock on an as-converted basis, assumed to be converted for the entire period. We believe that the adjustments applied in presenting Adjusted EBITDA, Adjusted Net Income and Adjusted EPS are appropriate to provide additional information to investors about certain material non-cash items and about non-recurring items that we do not expect to continue at the same level in the future.

Previous wording

Adjusted EBITDA, Adjusted Net Income, Adjusted EPS and Adjusted Free Cash Flow are not recognized terms under GAAP and should not be considered as an alternative to net income (loss) as a measure of financial performance or cash flows provided by operating activities as a measure of liquidity, or any other performance measure derived in accordance with GAAP. The presentations of these measures have limitations as analytical tools and should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to the same or other similarly titled measures of other companies and can differ significantly from company to company.

Current wording

Adjusted EBITDA, Adjusted Net Income, Adjusted EPS and Adjusted Free Cash Flow are not recognized terms under GAAP and should not be considered as an alternative to net income as a measure of financial performance or cash flows provided by operating activities as a measure of liquidity, or any other performance measure derived in accordance with GAAP. The presentations of these measures have limitations as analytical tools and should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to the same or other similarly titled measures of other companies and can differ significantly from company to company.

Previous wording

Set forth below are the reconciliations of net income (loss) to Adjusted EBITDA and Adjusted Net Income, and cash flows from operating activities to Adjusted Free Cash Flow. Adjusted EPS is defined as Adjusted Net Income (shown below) divided by the Adjusted Weighted Average Number of Common Shares Outstanding for the period used in the calculation of basic EPS which is presented in Note 14 “Earnings (Loss) Per Share of Common Stock” in the Notes to our unaudited consolidated financial statements.

Current wording

Set forth below are the reconciliations of net income to Adjusted EBITDA and Adjusted Net Income, and cash flows from operating activities to Adjusted Free Cash Flow. Adjusted EPS is defined as Adjusted Net Income (shown below) divided by the Adjusted Weighted Average Number of Common Shares Outstanding for the period used in the calculation of basic EPS which is presented in Note 14 “Earnings Per Share of Common Stock” in the Notes to our unaudited consolidated financial statements.

Previous wording

Represents equity-based compensation expense and related taxes recognized for equity incentive plans outstanding.

Current wording

Represents equity-based compensation expense and related taxes recognized for outstanding equity incentive plans.

Previous wording

Represents the tax effect of pre-tax items excluded from Adjusted Net Income and the removal of the applicable discrete tax items, which collectively result in a reduction of income tax expense (benefit). The tax effect of pre-tax items excluded from Adjusted Net Income is computed using the statutory rate related to the jurisdiction that was impacted by the adjustment after taking into account the impact of permanent differences and valuation allowances. Discrete tax items include tax impact of the gain on divestiture of U.S. Lawns, changes in laws or rates, changes in uncertain tax positions relating to prior years and changes in valuation allowances.

Current wording

Represents the tax effect of pre-tax items excluded from Adjusted Net Income and the removal of the applicable discrete tax items, which collectively result in a reduction of income tax expense. The tax effect of pre-tax items excluded from Adjusted Net Income is computed using the statutory rate related to the jurisdiction that was impacted by the adjustment after taking into account the impact of permanent differences and valuation allowances. Discrete tax items include tax impact of the gain on divestiture of U.S. Lawns, changes in laws or rates, changes in uncertain tax positions relating to prior years and changes in valuation allowances.

Previous wording

Maintenance Services net service revenues for the six months ended March 31, 2025 decreased by $50.7 million, or 5.3%, from the 2024 period. Commercial Landscaping services decreased by $42.8 million, or 5.8% and snow removal services decreased by $7.9 million, or 3.7%. The decrease was primarily driven by strategic reductions of non-core businesses and to a lesser extent a decline in commercial landscaping services revenue in our core business partially offset by an increase in snow removal services revenue in our core business.

Current wording

Maintenance Services net service revenues for the three months ended June 30, 2025 decreased by $15.9 million, or 3.0%, from the 2024 period. Commercial Landscaping services decreased by $13.3 million, or 2.6% and snow removal services decreased by $2.6 million or 30.1%. The decrease in commercial landscaping was underpinned by a decline in a combination of contract services and ancillary services.

Previous wording

Segment Adjusted EBITDA for the three months ended March 31, 2025 increased $7.5 million, to $17.2 million, compared to the 2024 period. Segment Adjusted EBITDA Margin increased 410 basis points to 10.0% for the three months ended March 31, 2025, from 5.9% in the 2024 period. The increase in Adjusted EBITDA and Segment Adjusted EBITDA Margin were primarily driven by the increase in net service revenues described above and a shift in the timing and mix of projects.

Current wording

Segment Adjusted EBITDA for the three months ended June 30, 2025 increased $4.0 million, to $31.5 million, compared to the 2024 period. Segment Adjusted EBITDA Margin increased 280 basis points to 15.6% for the three months ended June 30, 2025, from 12.8% in the 2024 period. The increases in Segment Adjusted EBITDA and Segment Adjusted EBITDA Margin were primarily driven by reductions in overhead costs due to the Company's cost management initiatives combined with the timing and mix of projects in the period.

Previous wording

Segment Results for the Six Months Ended March 31, 2025 and 2024

Current wording

Segment Results for the Nine Months Ended June 30, 2025 and 2024

Previous wording

The following tables present Net service revenues, Segment Adjusted EBITDA, and Segment Adjusted EBITDA Margin for each of our segments for the six months ended March 31, 2025 and 2024. Changes in Segment Adjusted EBITDA Margin are shown in basis points or bps.

Current wording

The following tables present Net service revenues, Segment Adjusted EBITDA, and Segment Adjusted EBITDA Margin for each of our segments for the nine months ended June 30, 2025 and 2024. Changes in Segment Adjusted EBITDA Margin are shown in basis points or bps.

Previous wording

Maintenance Services net service revenues for the three months ended March 31, 2025 decreased by $17.7 million, or 3.5%, from the 2024 period. Commercial Landscaping services decreased by $17.1 million, or 5.1% and snow removal services decreased by $0.6 million, or 0.3%. The decrease was primarily driven by strategic reductions of non-core businesses and to a lesser extent a decline in commercial landscaping services revenue in our core business partially offset by an increase in snow removal services revenue in our core business.

Current wording

Maintenance Services net service revenues for the nine months ended June 30, 2025 decreased by $66.6 million, or 4.5%, from the 2024 period. Commercial Landscaping services decreased by $56.1 million, or 4.5% and snow removal services decreased by $10.5 million, or 4.7%. The decrease was primarily driven by strategic reductions of non-core businesses and to a lesser extent a decline in commercial landscaping in our core business.

Previous wording

Segment Adjusted EBITDA for the six months ended March 31, 2025 increased by $4.5 million to $91.0 million from $86.5 million in the 2024 period. Segment Adjusted EBITDA Margin increased 100 basis points to 10.1% in the six months ended March 31, 2025, from 9.1% in the 2024 period. The increase in Segment Adjusted EBITDA and Adjusted EBITDA Margin was primarily driven by lower overhead as a result of the Company's cost management initiatives. These savings more than offset the decrease in revenues described above.

Current wording

Segment Adjusted EBITDA for the nine months ended June 30, 2025 increased by $5.8 million to $172.7 million from $166.9 million in the 2024 period. Segment Adjusted EBITDA Margin increased 90 basis points to 12.2% in the nine months ended June 30, 2025, from 11.3% in the 2024 period. The increase in Segment Adjusted EBITDA and Adjusted EBITDA Margin was primarily driven by lower personnel, vehicle, and equipment related costs as a result of the Company's cost management initiatives. These savings more than offset the decrease in revenues described above.

Previous wording

Development Services net service revenues for the three months ended March 31, 2025 increased $7.5 million, or 4.6%, compared to the 2024 period. The increase was driven by an increase in Development Services project volumes.

Current wording

Development Services net service revenues for the nine months ended June 30, 2025 increased $0.2 million, compared to the 2024 period. The results were driven by increased Development Services project volumes in the first half of fiscal 2025, which were offset by delays in the timing of projects during the third quarter.

Previous wording

Segment Adjusted EBITDA for the six months ended March 31, 2025 increased 9.5% million, to $34.6 million, compared to the 2024 period. Segment Adjusted EBITDA Margin increased 240 basis points to 9.5% in the six months ended March 31, 2025, from 7.1% in the 2024 period. The increase in Adjusted EBITDA and Segment Adjusted EBITDA Margin were primarily driven by the increase in net service revenues described above and a shift in the timing and mix of projects.

Current wording

Segment Adjusted EBITDA for the nine months ended June 30, 2025 increased $13.5 million, to $66.1 million, compared to the 2024 period. Segment Adjusted EBITDA Margin increased 240 basis points to 11.7% in the nine months ended June 30, 2025, from 9.3% in the 2024 period. The increases in Segment Adjusted EBITDA and Segment Adjusted EBITDA Margin were primarily driven by reductions in overhead costs due to the Company's cost management initiatives, combined with the timing and mix of projects in the period.

Previous wording

Net cash provided by operating activities for the six months ended March 31, 2025 increased $42.2 million to $151.7 million, from $109.5 million in the 2024 period. This increase was due to a decrease in net income, more than offset by increases in non-cash adjustments to reconcile net (loss) income to net cash provided by operating activities.

Current wording

Net cash provided by operating activities for the nine months ended June 30, 2025 increased $55.3 million to $207.4 million, from $152.1 million in the 2024 period. This increase was due to a decrease in net income, more than offset by increases in non-cash adjustments to reconcile net income to net cash provided by operating activities, combined with an increase in cash provided by accounts receivable. This was partially offset by a decrease in cash provided by other operating assets.

Previous wording

Net cash used by investing activities increased $115.7 million to $83.4 million for the six months ended March 31, 2025 from Net cash provided by investing activities of $32.3 million in the 2024 period. The increase was driven by a $69.6 million increase in capital expenditures, and a $51.6 million decrease in proceeds from divestiture, partially offset by a $5.0 million increase in proceeds from the sale of property and equipment in comparison to the prior period.

Current wording

Net cash used by investing activities increased $202.1 million to $179.2 million for the nine months ended June 30, 2025 from Net cash provided by investing activities of $22.9 million in the 2024 period. The increase was driven by a $149.8 million increase in capital expenditures, and a $51.6 million decrease in proceeds from divestiture in comparison to the prior period.

Previous wording

Net cash flows used by financing activities of $67.4 million for the six months ended March 31, 2025 included repayments of finance lease obligations of $21.1 million, Series A preferred stock dividends of $18.0 million, a decrease in book overdrafts of $17.2 million, repayments of our Receivables Financing Agreement of $16.0 million, and repurchase of common stock and distributions of $6.8 million. These uses of cash were partially offset by proceeds from our receivables financing agreement of 11.6 million.

Current wording

Net cash flows used by financing activities of $89.5 million for the nine months ended June 30, 2025 included repayments of finance lease obligations of $38.4 million, Series A preferred stock dividends of $26.9 million, repayments of our Receivables Financing Agreement of $27.9 million, and repurchase of common stock and distributions of $14.5 million. These uses of cash were partially offset by proceeds from our receivables financing agreement of $14.5 million.

Previous wording

Adjusted Free Cash Flow decreased $22.4 million to $67.0 million for the six months ended March 31, 2025 from $89.4 million in the 2024 period. The decrease in Adjusted Free Cash Flow was due to an increase in cash used for capital expenditures, partially offset by an increase in net cash provided by operating activities, each as described above.

Current wording

Adjusted Free Cash Flow decreased $94.4 million to $25.8 million for the nine months ended June 30, 2025 from $120.2 million in the 2024 period. The decrease in Adjusted Free Cash Flow was due to an increase in cash used for capital expenditures, partially offset by an increase in net cash provided by operating activities, each as described above.

Previous wording

Net working capital is defined as current assets less current liabilities. Net working capital decreased $26.1 million to $210.7 million as of March 31, 2025, from $236.8 million as of September 30, 2024, primarily driven by a decrease in unbilled revenue of $46.3 million, increase in deferred revenue of $29.6 million, and decrease in accounts receivable of $20.3 million. This was partially offset by a decrease in accrued expenses and other current liabilities of $59.8 million, decrease in accounts payable of $7.5 million, and increase in other current assets of $1.1 million.

Current wording

Net working capital is defined as current assets less current liabilities. Net working capital decreased $80.8 million to $156.0 million as of June 30, 2025, from $236.8 million as of September 30, 2024, primarily driven by a decrease in cash and cash equivalents of $61.3 million, decrease in unbilled revenue of $28.9 million, decrease in accounts receivable of $19.0 million, increase in deferred revenue of $15.9 million, decrease in other current assets of $5.6 million and increase in the current portion of self-insurance reserves of $4.4 million. This was partially offset by a decrease in accrued expenses and other current liabilities of $30.5 million and a decrease in accounts payable of $23.7 million.