10-Q · May 5, 2026
BrightView Holdings reported Q2 2026 net service revenues of $702.9 million, a 6.1% increase from $662.6 million in Q2 2025, primarily driven by a $61.8 million increase in Maintenance Services. However, net income fell…
Earnings analysis · 10-Q
BV earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
BrightView delivered Q3 revenue of $717.6 million, up 1.3% year over year and above Q2's $703.0 million, but profitability weakened materially versus the prior-year quarter. Gross margin declined 290 bps to 21.2%,…
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BrightView delivered Q3 revenue of $717.6 million, up 1.3% year over year and above Q2's $703.0 million, but profitability weakened materially versus the prior-year quarter. Gross margin declined 290 bps to 21.2%, operating income fell to $32.3 million from $57.6 million, and diluted EPS was a $0.03 loss versus $0.16 profit. Maintenance revenue growth of 1.8% did not offset a 22.9% decline in its Segment Adjusted EBITDA, while cash fell to $14.4 million and total debt rose to $882.7 million.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.03
What stood out
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Revenue grew year over year and sequentially
Q3 net service revenue rose $9.3 million, or 1.3%, year over year to $717.6 million. Revenue also increased $14.6 million from Q2 FY2026's $703.0 million.
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Sequential profitability improved
Gross margin improved sequentially to 21.2% from 19.6% in Q2 FY2026, while operating margin increased to 4.5% from 2.3%. Diluted EPS improved to a loss of $0.03 from a $0.08 loss in Q2.
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Maintenance commercial activity expanded
Maintenance Services revenue increased $9.1 million, or 1.8%, to $517.9 million, driven by a $11.7 million, or 2.3%, rise in commercial landscaping services.
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Development segment margin expanded
Development Services Segment Adjusted EBITDA increased $1.6 million, or 5.1%, to $33.1 million, and margin expanded 80 bps to 16.4%.
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Quarterly free-cash-flow deficit narrowed
Quarterly adjusted free cash flow improved to negative $12.7 million from negative $41.3 million a year earlier, as capital expenditures fell to $65.3 million from $103.6 million.
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Share repurchases continued
The company repurchased 747,010 shares at an average $12.23 per share in Q3, leaving $97.0 million available under its $150 million authorization.
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Management asserts 12-month liquidity coverage
Management says liquidity is sufficient for the next 12 months; it had $14.4 million cash and capacity to add up to $303.0 million of incremental commitments/term loans subject to conditions.
What to watch
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Margin pressure outweighed modest revenue growth
Gross profit declined $19.0 million, or 11.1%, to $151.9 million and gross margin fell 290 bps year over year to 21.2%. Management cites a non-routine self-insurance adjustment and higher depreciation expense.
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Maintenance profitability deteriorated sharply
Maintenance Segment Adjusted EBITDA fell $18.7 million, or 22.9%, to $63.0 million; its margin contracted 390 bps to 12.2%, reflecting the self-insurance adjustment, higher fuel prices and sales-force investment.
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Leverage rose as cash generation weakened
Cash declined $60.1 million to $14.4 million while total debt increased $92.5 million to $882.7 million. Nine-month adjusted free cash flow was negative $37.2 million versus positive $25.8 million a year earlier.
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Maintenance goodwill has limited valuation cushion
The Maintenance reporting unit carries $1,797.7 million of goodwill, and its latest annual fair value exceeded carrying value by only 15.4%; management says unfavorable rates, markets or missed forecasts could create future impairment risk.
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No formal risk-factor updates
Item 1A reports no material changes to risk factors from the September 30, 2025 Form 10-K. Accordingly, the filing does not identify a newly added or materially revised risk factor.
Management's outlook
The 10-Q does not provide quantitative FY2026 revenue or EPS guidance; outlook is deferred to other company communications. Management states that current operations, cash flow and facility availability are expected to fund obligations, working capital, capital spending and repurchases for the next 12 months and foreseeable future.
Earlier filings 4
10-Q · August 6, 2025
BrightView reported Q3 net service revenues of $708.3 million (down $30.5M vs. Q3 2024) with gross margin steady at 24.1% and operating margin expanding to 8.1%. Diluted EPS was $0.15 (vs. $0.10 in Q3 2024). Liquidity…
10-Q · May 7, 2025
BrightView reported net service revenues of $662.6M for the quarter ended March 31, 2025, up versus the prior quarter but slightly below the prior-year quarter. Gross margin was 22.3% and operating margin improved…
10-Q · July 31, 2024
BrightView reported Q3 net service revenues of $738.8M, down from $766.0M a year ago, with gross profit falling to $177.6M (gross margin ~24.0%). The quarter saw declines in Maintenance Services while Development…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.