Montrose Environmental Group, Inc.

For the period ended Sep 30, 2025. Filed Nov 5, 2025.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Sep 30, 2025 · Filed Nov 5, 2025

ONT$23.66+0.3%Stored close · as of Nov 10, 2026

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Contents

Unaudited Condensed Consolidated Statements of Cash Flows

(In thousands)

	For the Nine Months Ended September 30,
	2025	2024
Operating activities:
Net income (loss)	$7,375	$(34,091)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Provision (recovery) for credit loss	7,038	(367)
Depreciation and amortization	39,015	37,408
Non-cash leases expense	8,894	8,423
Stock-based compensation expense	33,777	34,866
Fair value changes in financial instruments	(18,394)	4,851
Write off of deferred financing costs	913	—
Deferred income taxes	(2,266)	4,931
Other operating activities, net	948	682
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable and contract assets	(28,755)	(45,898)
Prepaid expenses and other current assets	(2,823)	(3,197)
Accounts payable and other accrued liabilities	6,094	(2,192)
Accrued payroll and benefits	12,051	(4,936)
Change in operating leases	(8,871)	(9,233)
Other assets	552	(968)
Net cash provided by (used in) operating activities	$55,548	$(9,721)
Investing activities:
Proceeds from corporate owned and property insurance	—	182
Purchases of property and equipment	(10,934)	(19,086)
Proceeds from the sale of property and equipment	89	401
Proprietary software development and other software costs	(1,759)	(2,052)
Purchase price true ups	—	(3,413)
Minority investments	—	(210)
Cash paid for acquisitions, net of cash acquired	—	(113,012)
Net cash used in investing activities	$(12,604)	$(137,190)
Financing activities:
Proceeds from revolving line of credit	386,397	326,468
Repayment of the revolving line of credit	(305,518)	(278,335)
Repayment of aircraft loan	(853)	(796)
Proceeds from term loan	200,000	50,000
Repayment of term loan	(189,218)	(11,094)
Payment of contingent consideration and other purchase price true ups	(5,458)	(363)
Repayment of finance leases	(8,923)	(4,384)
Payments of deferred financing costs	(2,189)	(348)
Proceeds from issuance of common stock for exercised stock options	405	1,973
Proceeds from issuance of common stock in follow-on offering, net of issuance costs	—	121,776
Proceeds from building sale leaseback	2,500	—
Dividend payment to the series A-2 stockholders	(4,150)	(8,314)
Redemption of series A-2 preferred stock	(122,235)	(60,000)
Net cash provided by (used in) financing activities	$(49,242)	$136,583
Change in cash, cash equivalents and restricted cash	(6,298)	(10,328)
Foreign exchange impact on cash balance	99	133
Cash, cash equivalents and restricted cash:
Beginning of year	12,935	23,240
End of period	$6,736	$13,045

	For the Nine Months Ended September 30,
	2025	2024
Supplemental disclosures of cash flows information:
Cash paid for interest	$13,240	$10,699
Cash paid for income tax	$5,379	$2,713
Supplemental disclosures of non-cash investing and financing activities:
Accrued purchases of property and equipment	$777	$1,810
Property and equipment purchased under finance leases	$8,020	$5,806
Common stock issued to acquire new businesses	$—	$10,712
Acquisitions unpaid contingent consideration	$23,419	$34,348
Acquisitions contingent consideration paid in common stock	$6,998	$1,087

ContentsView on SEC.gov

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