Bowman Consulting Group Ltd.

Previous wording

Gross contract revenue for the three months ended March 31, 2026 and 2025 was $126.5 million and $112.9 million, respectively, representing year-over-year growth of 12.0%. Gross contract revenue derived from our workforce represented 90.3% and 88.7% of gross contract revenue for the three months ended March 31, 2026 and 2025, respectively (see Net service billing – non-GAAP below). Our net loss for the three months ended March 31, 2026 and 2025 was ($3.7) million and ($1.7) million, respectively. Our Adjusted EBITDA for the three months ended March 31, 2026 and 2025 was $16.8 million on net loss of ($3.7) million and $14.5 million on net loss of ($1.7) million, respectively. (see Adjusted EBITDA – non-GAAP below).

Current wording

Gross contract revenue for the three months ended June 30, 2026 and 2025 was $146.1 million and $122.1 million, respectively, representing year-over-year growth of 19.7%. Gross contract revenue derived from our workforce represented 88.3% and 88.5% of gross contract revenue for the three months ended June 30, 2026 and 2025, respectively (see Net service billing – non-GAAP below). Our net income for the three months ended June 30, 2026 and 2025 was $2.5 million and $6.0 million, respectively. Our Adjusted EBITDA for the three months ended June 30, 2026 and 2025 was $24.1 million on net income of $2.5 million and $20.2 million on net income of $6.0 million, respectively. (see Adjusted EBITDA – non-GAAP below).

Previous wording

The majority of our assignments within a contract are lump sum in nature, representing approximately 59% and 57% of our gross contract revenue for the three months ended March 31, 2026 and 2025, respectively. However, when evaluated at the overall contract or project level, approximately 92% and 91% of our gross contract revenue for those same periods was recognized over time. This difference reflects the presence of both hourly and lump sum assignments within individual contracts. Recognizing revenue from lump sum assignments requires management estimates of both total contract value when there are contingent compensation elements of the fee arrangement and expected cost at completion. We closely monitor our progress to completion and adjust our estimates when necessary. We do not recognize revenue from work that is performed at risk with no documented customer commitment.

Current wording

The majority of our assignments within a contract are lump sum in nature, representing approximately 54% of gross contract revenue for both the three and six months ended June 30, 2026, compared to approximately 61% and 59% for the three and six months ended June 30, 2025, respectively. However, when evaluated at the overall contract or project level, approximately 92% and 92% of gross contract revenue for the three and six months ended June 30, 2026, respectively, was recognized over time. Comparable percentages for the three and six months ended June 30, 2025 were 92% and 91%, respectively. This difference reflects the presence of both hourly and lump sum assignments within individual contracts. Recognizing revenue from lump sum assignments requires management estimates of both total contract value when there are contingent compensation elements of the fee arrangement and expected cost at completion. We closely monitor our progress to completion and adjust our estimates when necessary. We do not recognize revenue from work that is performed at risk with no documented customer commitment.

Previous wording

Gross contract revenue for the three months ended March 31, 2026, increased $13.6 million or 12.0% to $126.5 million as compared to $112.9 million for the three months ended March 31, 2025. For the three months ended March 31, 2026, gross contract revenue attributable to work performed by our workforce increased $14.1 million, or 14.1% to $114.2 million or 90.3% of gross contract revenue as compared to $100.1 million or 88.7% for the three months ended March 31, 2025 (see Net service billing – non-GAAP). Of the $13.6 million increase in gross contract revenue during the three months ended March 31, 2026, acquisitions represented $8.6 million of the increase. To evaluate the Company’s growth, revenue from acquisitions is treated as acquired for a period of four quarters post-closing, after which it is considered organic. For each measurement and comparison period, historical balances of acquired and organic revenue bases are adjusted to reflect revenue accordingly.

Current wording

Gross contract revenue for the three months ended June 30, 2026, increased $24.0 million or 19.7% to $146.1 million as compared to $122.1 million for the three months ended June 30, 2025. For the three months ended June 30, 2026, gross contract revenue attributable to work performed by our workforce increased $21.0 million, or 19.4% to $129.0 million or 88.3% of gross contract revenue as compared to $108.0 million or 88.5% for the three months ended June 30, 2025 (see Net service billing – non-GAAP). Of the $24.0 million increase in gross contract revenue during the three months ended June 30, 2026, acquisitions represented $7.5 million of the increase. To evaluate the Company’s growth, revenue from acquisitions is treated as acquired for a period of four quarters post-closing, after which it is considered organic. For each measurement and comparison period, historical balances of acquired and organic revenue bases are adjusted to reflect revenue accordingly.

Previous wording

2 Formerly Emerging Markets which represents environmental, mining, water resources, imaging and mapping and other.

Current wording

1 Formerly Emerging Markets which represents environmental, mining, water resources, imaging and mapping and other.

Previous wording

3 Acquired revenue in prior periods is as previously reported; four quarters post-closing, acquired revenue is reclassified as organic for the purpose of calculating organic growth rates.

Current wording

2 Acquired revenue in prior periods is as previously reported; four quarters post-closing, acquired revenue is reclassified as organic for the purpose of calculating organic growth rates.

Previous wording

For the three months ended March 31, 2026, gross contract revenue from the building infrastructure market increased less than $0.1 million or 0.6% as compared to the three months ended March 31, 2025. Building Infrastructure includes commercial, municipal and residential infrastructure. The increase in building infrastructure revenue was the result of acquisitions and organic growth. Within the building infrastructure market, 37.5% of gross contract revenue was derived from residential assignments including single family, multi-family and mixed-use housing stock, 41.3% from commercial assignments including retail, hospitality and quick-serve restaurants (QSR), office and industrial, data centers and healthcare, and 21.2% from municipal assignments. Within residential, 44.6% of gross contract revenue was derived from for-sale homebuilding assignments, 46.8% from residential multi-family and 8.6% from mixed use projects. While the homebuilding market shows signs of rebounding from prior year interest rate impacts, for-sale residential services represented just 6.9% of our total gross contract revenue for the three months ended March 31, 2026. Within commercial, 48.2% of revenue was derived from office and industrial assignments, 47.1% from retail, hospitality, and quick serve restaurants, and 4.7% from healthcare. We continue to experience strong demand for our building infrastructure services and maintain a positive outlook on this market as we continue to experience strength in markets including quick serve restaurants, data centers, industrial distribution facilities, schools, and build-for-rent communities.

Current wording

For the three months ended June 30, 2026, gross contract revenue from the building infrastructure market increased $0.6 million or 1.1% as compared to the three months ended June 30, 2025. Building Infrastructure includes commercial, municipal and residential infrastructure. The increase in building infrastructure revenue was the result of acquisitions and organic growth. Within the building infrastructure market, 35.5% of gross contract revenue was derived from residential assignments including single family, multi-family and mixed-use housing stock, 41.3% from commercial assignments including retail, hospitality and quick-serve restaurants (QSR), office and industrial, data centers and healthcare, and 23.2% from municipal assignments. Within residential, 45.1% of gross contract revenue was derived from for-sale homebuilding assignments, 47.4% from residential multi-family and 7.5% from mixed use projects. While the homebuilding market shows signs of rebounding from prior year interest rate impacts, for-sale residential services represented just 6.3% of our total gross contract revenue for the three months ended June 30, 2026. Within commercial, 46.4% of revenue was derived from office and industrial assignments, 46.9% from retail, hospitality, and quick serve restaurants, and 6.7% from healthcare. We continue to experience strong demand for our building infrastructure services and maintain a positive outlook on this market as we continue to experience strength in markets including quick serve restaurants, data centers, industrial distribution facilities, schools, and build-for-rent communities.

Previous wording

For the three months ended March 31, 2026, revenue from transportation increased $3.1 million or 13.0% as compared to the three months ended March 31, 2025. The increase was attributable to new contract awards in transportation from roadways, transits, ports and harbors, program administration and others, along with acquired transportation backlog which we were able to deliver to customers. Within transportation, 76.8% of our gross contract revenue was derived from public sector roadway customers, including state and local departments of transportation ("DOTs") and tollway operators; 19.8% from private sector roadway customers; 1.0% from ports & harbors customers; and 2.4% from aviation customers. We expect to continue to increase our transportation revenue and improve the diversification of our revenue. We believe the transportation market continues to present significant opportunity for future growth and we remain committed to investing in leadership, technical expertise, business development and acquisitions for this market.

Current wording

For the three months ended June 30, 2026, revenue from transportation increased $3.8 million or 15.3% as compared to the three months ended June 30, 2025. The increase was attributable to new contract awards in transportation from roadways, transits, ports and harbors, program administration and others, along with acquired transportation backlog which we were able to deliver to customers. Within transportation, 77.3% of our gross contract revenue was derived from public sector roadway customers, including state and local departments of transportation ("DOTs") and tollway operators; 19.1% from private sector roadway customers; 1.6% from ports & harbors customers; 1.1% from bus, rail, and transit customers; and 0.9% from aviation customers. We expect to continue to increase our transportation revenue and improve the diversification of our revenue. We believe the transportation market continues to present significant opportunity for future growth and we remain committed to investing in leadership, technical expertise, business development and acquisitions for this market.

Previous wording

With the convergence of renewable energy with traditional transmission infrastructure and the continued growth we are projecting in the clean energy transition, we have consolidated renewable energy into the power, utilities and energy category (sometimes referred to herein as the power, utilities and energy market) of our revenue mix and have adjusted historical balances accordingly. For the three months ended March 31, 2026, revenue from power, utilities, and energy increased $9.4 million or 37.2% as compared to the three months ended March 31, 2025. The additional increase in gross contract revenue from the power, utilities, and energy market is principally attributable to acquisitions and increased revenue associated with the expansion of a multi-year utility undergrounding assignment in Florida, and to increases derived from gas pipeline and electric transmission projects nationally. Within the power, utilities, and energy market, 60.7% of our gross contract revenue was derived from customers operating traditional transmission operations, 18.5% was derived from customers focused on alternative energy operations and 20.8% derived from data center customers. The power, utilities, and energy market continues to experience increasing infrastructure investment as changing weather patterns, energy transition mandates and other safety initiatives positively impact demand for the services we provide. Based on recent increases in program commitments within the gas pipeline replacement market, we believe trends in power, utilities, and energy provide meaningful opportunity for continued growth and we are committed to investing resources accordingly.

Current wording

With the convergence of renewable energy with traditional transmission infrastructure and the continued growth we are projecting in the clean energy transition, we have consolidated renewable energy into the power, utilities and energy category (sometimes referred to herein as the power, utilities and energy market) of our revenue mix and have adjusted historical balances accordingly. For the three months ended June 30, 2026, revenue from power, utilities, and energy increased $10.2 million or 38.0% as compared to the three months ended June 30, 2025. The additional increase in gross contract revenue from the power, utilities, and energy market is principally attributable to acquisitions and increased revenue associated with the expansion of a multi-year utility undergrounding assignment in Florida, and to increases derived from gas pipeline and electric transmission projects nationally. Within the power, utilities, and energy market, 56.9% of our gross contract revenue was derived from customers operating traditional transmission operations, 18.4% was derived from customers focused on alternative energy operations and 24.7% derived from data center customers. The power, utilities, and energy market continues to experience increasing infrastructure investment as changing weather patterns, energy transition mandates and other safety initiatives positively impact demand for the services we provide. Based on recent increases in program commitments within the gas pipeline replacement market, we believe trends in power, utilities, and energy provide meaningful opportunity for continued growth and we are committed to investing resources accordingly.

Previous wording

Our natural resources (formerly emerging markets) consist of mining, water resources, imaging and mapping, environmental consulting, and other natural resources services. For the three months ended March 31, 2026, revenue from natural resources markets decreased $0.8 million or 6.2% as compared to the three months ended March 31, 2025. What had previously been classified under emerging sectors grew to a scale that warranted separate market recognition. Accordingly, the emerging sector was renamed natural resources. The updated name reflects the evolved composition of this market. Gross contract revenue within natural resources was 44.6% from imaging and mapping activities, 14.6% from mining activities where we have specialized in copper mining, 30.5% from water resources activities, and 10.3% from environmental and other natural resources consulting. Scarcities in water resources and the increasing need for water management gives us confidence that we will be able to increase revenue accordingly. With recent and future acquisitions, we expect to experience continued growth from investment in various natural resources.

Current wording

Our natural resources and imaging (formerly emerging markets) consist of mining, water resources, imaging and mapping, environmental consulting, and other natural resources services. For the three months ended June 30, 2026, revenue from natural resources markets increased $9.5 million or 67.2% as compared to the three months ended June 30, 2025. What had previously been classified under emerging sectors grew to a scale that warranted separate market recognition. Accordingly, the emerging sector was renamed natural resources. The updated name reflects the evolved composition of this market. Gross contract revenue within natural resources was 64.3% from imaging and mapping activities, 13.3% from mining activities where we have specialized in copper mining, 19.3% from water resources activities, and 3.1% from environmental and other natural resources consulting. Scarcities in water resources and the increasing need for water management gives us confidence that we will be able to increase revenue accordingly. With recent and future acquisitions, we expect to experience continued growth from investment in various natural resources.

Previous wording

For the three months ended March 31, 2026 and 2025, public sector customers, defined as direct contracts with municipalities, public agencies, or governmental authorities, represented 29.2% and 28.8% of our gross contract revenue, respectively. A portion of that increase is due to the reclassification of contracts for the Pike Corporation from the private sector to the public sector. This does not include work done indirectly on public sector projects. Gross contract revenue from projects for public sector customers are included in the end market most aligned with work performed.

Current wording

For the three months ended June 30, 2026 and 2025, public sector customers, defined as direct contracts with municipalities, public agencies, or governmental authorities, represented 28.7% and 35.4% of our gross contract revenue, respectively. This does not include work done indirectly on public sector projects. Gross contract revenue from projects for public sector customers are included in the end market most aligned with work performed.

Previous wording

Total contract costs, exclusive of depreciation and amortization, increased $5.8 million or 10.6% to $60.6 million for the three months ended March 31, 2026, as compared to $54.8 million for the three months ended March 31, 2025. For the three months ended March 31, 2026 and 2025, total contract costs represented 47.9% and 48.5% of total contract revenue, respectively. For the three months ended March 31, 2026 and 2025 total contract costs represented 53.1% and 54.7% of revenue attributable to our workforce, respectively (see Net Service Billing).

Current wording

Total contract costs, exclusive of depreciation and amortization, increased $11.9 million or 21.1% to $68.4 million for the three months ended June 30, 2026, as compared to $56.5 million for the three months ended June 30, 2025. For the three months ended June 30, 2026 and 2025, total contract costs represented 46.8% and 46.3% of total contract revenue, respectively. For the three months ended June 30, 2026 and 2025 total contract costs represented 53.0% and 52.3% of revenue attributable to our workforce, respectively (see Net Service Billing).

Previous wording

Direct payroll costs increased $6.3 million or 15.0% to $48.3 million for the three months ended March 31, 2026, as compared to $42.0 million for the three months ended March 31, 2025. The increase in direct payroll costs is primarily driven by higher revenue and increased headcount to support growth, including contributions from recent acquisitions, as well as merit-based compensation increases. Direct payroll accounted for 79.7% of total contract costs for the three months ended March 31, 2026, an increase of 3.1% as compared to 76.6% for the three months ended March 31, 2025.

Current wording

Direct payroll costs increased $8.8 million or 20.8% to $51.2 million for the three months ended June 30, 2026, as compared to $42.4 million for the three months ended June 30, 2025. The increase in direct payroll costs is primarily driven by higher revenue and increased headcount to support growth, including contributions from recent acquisitions, as well as merit-based compensation increases. Direct payroll accounted for 74.9% of total contract costs for the three months ended June 30, 2026, a decrease of (0.1) percentage points as compared to 75.0% for the three months ended June 30, 2025.

Previous wording

Direct labor, the component of direct payroll costs associated with the cost of labor relating to work performed on contracts increased $5.4 million or 17.2% to $36.8 million for the three months ended March 31, 2026 as compared to $31.4 million for the three months ended March 31, 2025. The increase in direct labor is primarily due to an increase in staffing to accommodate growth. For the three months ended March 31, 2026 and 2025, direct labor costs represented 29.1% and 27.8% of gross contract revenue, respectively, and represented 32.2% and 31.4% of the revenue attributable to our workforce, respectively.

Current wording

Direct labor, the component of direct payroll costs associated with the cost of labor relating to work performed on contracts increased $5.6 million or 17.1% to $38.4 million for the three months ended June 30, 2026 as compared to $32.8 million for the three months ended June 30, 2025. The increase in direct labor is primarily due to an increase in staffing to accommodate growth. For the three months ended June 30, 2026 and 2025, direct labor costs represented 26.3% and 26.9% of gross contract revenue, respectively, and represented 29.8% and 30.4% of the revenue attributable to our workforce, respectively.

Previous wording

Other direct payroll costs, the component of direct payroll costs associated with fringe and incentive compensation (cash and non-cash) increased by $1.0 million or 9.5% to $11.5 million for the three months ended March 31, 2026 as compared to $10.5 million for the three months ended March 31, 2025.

Current wording

Other direct payroll costs, the component of direct payroll costs associated with fringe and incentive compensation (cash and non-cash) increased by $3.4 million or 35.8% to $12.9 million for the three months ended June 30, 2026 as compared to $9.5 million for the three months ended June 30, 2025.

Previous wording

Sub-consultants and other direct expenses decreased ($0.6) million or (4.7%) to $12.3 million for the three months ended March 31, 2026 as compared to $12.9 million for the three months ended March 31, 2025. For the three months ended March 31, 2026 and 2025, sub-consultant and other direct expenses represented 9.7% and 11.4% of gross contract revenue, respectively.

Current wording

Sub-consultants and other direct expenses increased $3.1 million or 22.0% to $17.2 million for the three months ended June 30, 2026 as compared to $14.1 million for the three months ended June 30, 2025. For the three months ended June 30, 2026 and 2025, sub-consultant and other direct expenses represented 11.8% and 11.5% of gross contract revenue, respectively.

Previous wording

Total operating expense increased $8.8 million or 15.4% to $65.8 million for the three months ended March 31, 2026 as compared to $57.0 million for the three months ended March 31, 2025.

Current wording

Total operating expense increased $13.1 million or 23.2% to $69.6 million for the three months ended June 30, 2026 as compared to $56.5 million for the three months ended June 30, 2025.

Previous wording

Depreciation and amortization increased $1.9 million or 29.2% to $8.4 million for the three months ended March 31, 2026 as compared to $6.5 million for the three months ended March 31, 2025. The increase is primarily driven by amortization of new leased assets and higher amortization of acquired intangible assets associated with the RPT acquisition completed in the fourth quarter of 2025, which was not reflected in the prior-year period. The net gain on the sale of certain IT equipment and automobiles increased $0.4 million to $0.4 million of gain for the three months ended March 31, 2026, as compared to less than $0.1 million of gain in the three months ended March 31, 2025.

Current wording

Depreciation and amortization increased $1.3 million or 20.0% to $7.8 million for the three months ended June 30, 2026 as compared to $6.5 million for the three months ended June 30, 2025. The increase is primarily driven by amortization of new leased assets and higher amortization of acquired intangible assets associated with the RPT acquisition completed in the fourth quarter of 2025, which was not reflected in the prior-year period. The net loss (gain) on the sale of certain IT equipment and automobiles decreased ($0.7) million to ($0.5) million of gain for the three months ended June 30, 2026, as compared to $0.2 million of expense in the three months ended June 30, 2025.

Previous wording

Other expense increased by $1.3 million to $3.4 million of expense for the three months ended March 31, 2026 as compared to $2.1 million for the three months ended March 31, 2025.

Current wording

Other expense increased by $4.2 million to $5.8 million of expense for the three months ended June 30, 2026 as compared to $1.6 million for the three months ended June 30, 2025.

Previous wording

Income tax expense for the three months ended March 31, 2026, decreased by ($0.4) million to $0.4 million, compared to $0.8 million for the three months ended March 31, 2025, see Note 2, Income Taxes. Our effective tax rate for the three months ended March 31, 2026, was (12.3)% compared to (78.9)% for the three months ended March 31, 2025.

Current wording

Income tax expense for the three months ended June 30, 2026, decreased by $1.6 million to $(0.2) million benefit, compared to $1.4 million expense for the three months ended June 30, 2025, see Note 2, Income Taxes. Our effective tax rate for the three months ended June 30, 2026, was (6.8)% compared to 18.9% for the three months ended June 30, 2025.

Previous wording

Loss Before Tax and Net Loss

Current wording

Income Before Tax and Net Income

Previous wording

Net service billing increased $14.1 million or 14.1% to $114.2 million for the three months ended March 31, 2026, as compared to $100.1 million for the three months ended March 31, 2025. Net service billing reconciles to gross contract revenue as follows (in thousands):

Current wording

Net service billing increased $21.0 million or 19.4% to $129.0 million for the three months ended June 30, 2026, as compared to $108.0 million for the three months ended June 30, 2025. Net service billing reconciles to gross contract revenue as follows (in thousands):

Previous wording

Adjusted EBITDA increased $2.3 million or 15.8% to $16.8 million for the three months ended March 31, 2026 as compared to $14.5 million for the three months ended March 31, 2025. Adjusted EBITDA reconciles to net income as follows (in thousands):

Current wording

Adjusted EBITDA increased $3.9 million or 19.2% to $24.1 million for the three months ended June 30, 2026 as compared to $20.2 million for the three months ended June 30, 2025. Adjusted EBITDA reconciles to net income as follows (in thousands):

Previous wording

For the three months ended March 31, 2026 and 2025, Adjusted EBITDA includes add backs of $4.2 million and $6.6 million, respectively, relating to non-cash stock compensation expenses from restricted stock awards.

Current wording

For the three months ended June 30, 2026 and 2025, Adjusted EBITDA includes add backs of $5.4 million and $3.1 million, respectively, relating to non-cash stock compensation expenses from restricted stock awards.

Previous wording

Adjusted EBITDA Margin, net represents Adjusted EBITDA (as defined above) as a percentage of net service billing (as defined above). For the three months ended March 31, 2026 and 2025, Adjusted EBITDA Margin, net was 14.7% and 14.5% respectively.

Current wording

Adjusted EBITDA Margin, net represents Adjusted EBITDA (as defined above) as a percentage of net service billing (as defined above). For the three months ended June 30, 2026 and 2025, Adjusted EBITDA Margin, net was 18.7% and 18.7% respectively.

Previous wording

Selling, general and administrative expenses increased $7.3 million or 14.5% to $57.8 million for the three months ended March 31, 2026, as compared to $50.5 million for the three months ended March 31, 2025. Indirect labor increased $2.6 million or 11.5% to $25.2 million as compared to $22.6 million due to increase in headcount along with merit increases. General overhead increased $4.6 million or 26.3% to $22.1 million as compared to $17.5 million due to increased costs associated with the overall growth of the Company.

Current wording

Selling, general and administrative expenses increased $19.9 million or 19.9% to $120.1 million for the six months ended June 30, 2026, as compared to $100.2 million for the six months ended June 30, 2025. Indirect labor increased $6.8 million or 14.9% to $52.3 million as compared to $45.5 million primarily due to an increase in staffing to accommodate growth. General overhead increased $10.3 million or 28.9% to $45.9 million as compared to $35.6 million due to increased costs associated with the overall growth of the Company.

Previous wording

Our backlog increased $173.6 million or 36.2% to $652.7 million during the three months ended March 31, 2026, as compared to $479.1 million at December 31, 2025. At March 31, 2026 and December 31, 2025 our backlog was comprised as follows:

Current wording

Our backlog increased $179.6 million or 37.5% to $658.7 million during the six months ended June 30, 2026, as compared to $479.1 million at December 31, 2025. At June 30, 2026 and December 31, 2025 our backlog was comprised as follows:

Previous wording

Our principal sources of liquidity are our cash and cash equivalents balances, cash flow from operations, borrowing capacity under our revolving credit facility under our Credit Agreement (as defined below), lease financing, proceeds from stock sales and other structured debt securities. Our principal uses of cash are operating expenses, working capital requirements, capital expenditures, repayment of debt, acquisitions, and acquisition related payments. On March 31, 2026, we maintained $250.0 million of aggregate revolving commitments under our Credit Agreement with Bank of America, our primary lender. See -"Credit Facilities and Other Financing" below for more information on our Credit Agreement. Under the terms of our Credit Agreement, available cash in our primary operating account sweeps against the outstanding balance every evening. Our cash on hand therefore generally consists of petty cash and other non-operating funds not included in the nightly sweep. Cash on hand includes the cash we keep in short-term investment accounts along with deposits and payments in transit in our operating sweep account. Our cash on hand increased by $1.0 million on March 31, 2026 as compared to December 31, 2025.

Current wording

Our principal sources of liquidity are our cash and cash equivalents balances, cash flow from operations, borrowing capacity under our revolving credit facility under our Credit Agreement (as defined below), lease financing, proceeds from stock sales and other structured debt securities. Our principal uses of cash are operating expenses, working capital requirements, capital expenditures, repayment of debt, acquisitions, and acquisition related payments. On June 30, 2026, we maintained $250.0 million of aggregate revolving commitments under our Credit Agreement with Bank of America, our primary lender. See -"Credit Facilities and Other Financing" below for more information on our Credit Agreement. Under the terms of our Credit Agreement, available cash in our primary operating account sweeps against the outstanding balance every evening. Our cash on hand therefore generally consists of petty cash and other non-operating funds not included in the nightly sweep. Cash on hand includes the cash we keep in short-term investment accounts along with deposits and payments in transit in our operating sweep account. Our cash on hand decreased by ($0.6) million on June 30, 2026 as compared to December 31, 2025.

Previous wording

During the three months ended March 31, 2026, net cash provided by operating activities was $11.6 million, which primarily consisted of ($3.7) million net loss, adjusted for stock-based compensation expense of $4.2 million, depreciation and amortization expense of $8.4 million, and a net cash inflow of $2.6 million from changes in operating assets and liabilities. The net inflow from changes in operating assets and liabilities was primarily due to a $7.7 million increase in accounts payable and accrued expenses, partially offset by a $3.6 million increase in accounts receivable resulting from a combination of acquired accounts receivable from acquisitions and increased billing to our customers, a $0.7 million increase in contract assets and liabilities, and a $0.8 million increase in prepaid expenses and other assets.

Current wording

During the six months ended June 30, 2026, net cash provided by operating activities was $3.7 million, which primarily consisted of ($1.2) million net loss, adjusted for stock-based compensation expense of $9.6 million, depreciation and amortization expense of $16.2 million, and a net cash outflow of ($21.3) million from changes in operating assets and liabilities. The net outflow from changes in operating assets and liabilities was primarily due to a $0.8 million decrease in accounts payable and accrued expenses, a $10.3 million increase in accounts receivable resulting from a combination of acquired accounts receivable from acquisitions and increased billing to our customers, and a $10.4 million increase in contract assets and liabilities, partially offset by a $0.1 million decrease in prepaid expenses and other assets.

Previous wording

Net cash used in investing activities increased by $0.2 million to ($1.9) million for the three months ended March 31, 2026 as compared to ($1.7) million for the three months ended March 31, 2025.

Current wording

Net cash used in investing activities increased by $8.3 million to $10.1 million for the six months ended June 30, 2026 as compared to $1.8 million for the six months ended June 30, 2025.

Previous wording

Net cash used in financing activities during the three months ended March 31, 2026 was ($8.7) million compared to ($6.3) million used in financing activities during the three months ended March 31, 2025, an increase of $2.4 million. The increase in net cash used in financing is primarily attributable to the net proceeds of $13.5 million from borrowing on the Revolving Credit Facility, offset by $4.2 million from payments on finance leases, $9.2 million for repurchase of common stock, $7.2 million used for repayment of notes and $1.8 million used to purchase treasury shares.

Current wording

Net cash provided by (used in) financing activities during the six months ended June 30, 2026 was $5.8 million compared to ($5.6) million used in financing activities during the six months ended June 30, 2025, an increase of $11.4 million. The increase in net cash used in financing is primarily attributable to the net proceeds of $40.8 million from borrowing on the Revolving Credit Facility, offset by $7.9 million from payments on finance leases, $12.2 million for repurchase of common stock, $13.3 million used for repayment of notes and $2.3 million used to purchase treasury shares.

Previous wording

Under the terms of the Credit Agreement, available cash in our primary operating account sweeps against the outstanding balance every evening. As of March 31, 2026, the outstanding balance was $108.8 million.

Current wording

Under the terms of the Credit Agreement, available cash in our primary operating account sweeps against the outstanding balance every evening. As of June 30, 2026, the outstanding balance was $136.2 million.