EVI INDUSTRIES, INC.

Operating Efficiency

Net Income for the quarter was 1.7% of revenue, compared to 3.5% in the prior-year period. Adjusted EBITDA for the quarter was 6.2% of revenue, compared to 8.1% in the prior-year period. This variance reflects the Company’s investments in long-term initiatives, including technology modernization, expansion of service capabilities, and integration of recently acquired businesses. Additionally, the results for the quarter were impacted by expenses incurred in connection with the Company’s participation during the quarter in the industry’s largest North American exposition, held for the first time since August 2022. While this investment temporarily affected earnings, the Company believes that the event provided valuable opportunities to strengthen its relationships with customers and partners and reinforce its leadership position in the commercial laundry industry. These combined efforts are expected to continue to enhance the Company’s platform and establish a stronger foundation for future margin expansion, operational efficiency, and sustainable growth.