GMRS earnings analysis
What we found in GMRS's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
GMR delivered modest revenue growth, supported by higher emergent and air transport volumes, but profitability deteriorated sharply as operating expenses grew 19.4% against 3.3% revenue growth. Q2 operating margin compressed to 3.8% from 16.7%, and diluted EPS declined to $(1.84) from $0.27, despite lower interest expense following substantial debt repayment. Balance-sheet leverage and preferred-stock obligations improved after the IPO, but cash declined, labor costs remain elevated, and reimbursement-estimate pressure weakened the quality of revenue growth.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue and patient activity increased
- Q2 revenue increased $48.3 million, or 3.3%, to $1,490.3 million from $1,442.0 million. Net transport revenue per ambulance transport increased 1.4% to $1,370, while total patient encounters rose 0.9% to 1,362,578.
- Air and emergent volumes grew
- Air transport volume increased 6.9% and ground transport volume increased 1.3%; emergent transports rose to 845,805 from 824,170. Complementary revenue increased $8.0 million, or 17.2%, to $54.4 million.
- Deleveraging reduced interest expense
- Net interest expense declined $31.7 million, or 29.2%, to $76.8 million, aided by the $670.0 million term-loan paydown and lower borrowing rates. Moody’s upgraded the corporate family rating to B1 from B2, reducing the applicable term-loan rate by 25 basis points.
- Debt and liquidity improved
- Gross long-term debt declined $632.6 million to $4,471.3 million from $5,103.9 million at December 31, 2025. The company also had $696.3 million of undrawn ABL availability after $103.7 million of letters of credit.
- Operating cash flow remained positive
- Six-month operating cash flow was $217.3 million versus $218.7 million in the prior year. Purchases of property and equipment were $138.0 million, equivalent to approximately 4.7% of six-month revenue of $2,947.9 million; net cash capital expenditures were $120.4 million.
- IPO simplified the capital structure
- The company completed its IPO by issuing 31.9 million shares at $15.00 per share and received $446.8 million of net proceeds. Redeemable preferred stock declined from $445.1 million at year-end to zero at June 30, 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Sharp operating and EPS deterioration
- Q2 operating income fell 76.5% to $56.7 million from $241.0 million, reducing operating margin to 3.8% from 16.7%. Net income declined from $80.8 million to a $28.3 million loss, while diluted EPS fell from $0.27 to $(1.84).
- Labor and operating cost inflation
- Employee wages, benefits and taxes increased $181.9 million, or 24.5%, to $924.5 million, including $129.6 million of higher stock-award expense and approximately $26.0 million of merit and other wage adjustments. Maintenance, fuel and other direct expenses also rose 21.1% to $136.4 million.
- Reimbursement estimate and payor pressure
- Favorable changes in estimates for No Surprises Act claims were approximately $74.3 million lower than in the prior-year quarter, limiting reported transport-revenue growth. Commercial insurance and managed-care revenue declined $46.2 million, or 5.6%, to $781.8 million.
- Cash conversion and liquidity usage
- Cash and cash equivalents declined $189.3 million to $420.0 million from $609.3 million at December 31, 2025, while accounts receivable increased $71.6 million to $1,166.4 million. Six-month cash used in financing was $286.1 million.
- Material future TRA obligations
- The company recorded a $468.4 million tax receivable agreement liability and expects to pay TRA parties 85% of realized tax benefits. Management states that the TRA may have a material impact on future liquidity and capital resources.
- Fuel-cost exposure
- Fuel sensitivity remains material: average aircraft fuel cost per gallon increased 28.8% and vehicle fuel cost per transport increased 33.9% year over year in Q2. Management estimates that a 10% change in fuel commodity prices would affect annual net earnings and cash flow by approximately $8.0 million.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-1.84
- Operating margin
- 3.8%
- Segment
- One reportable segment: total revenue was $1,490.3 million, up 3.3% year over year from $1,442.0 million.
- Segment
- Net transport revenue was $1,435.9 million, up 2.9% year over year; complementary revenue was $54.4 million, up 17.2% from $46.4 million.
- Segment
- Medicare revenue was $370.7 million versus $341.8 million; Medicaid was $122.1 million versus $108.0 million; commercial insurance and managed care was $781.8 million versus $828.0 million; other third-party payors was $135.3 million versus $91.6 million; self-pay was $26.0 million versus $26.2 million.
What they said about what is next.
The 10-Q does not provide numeric revenue or EPS guidance. FY2026 revenue and Adjusted EBITDA ranges were reaffirmed in the August 12, 2026 earnings release/8-K rather than in the 10-Q.
The filing reads worse than the one before it.
What came before.
- 10-Q · June 2, 2026
- GMR Solutions Inc. reported a strong Q1 2026, with net revenue increasing by 6.6% year-over-year to $1,457.6 million and net income soaring to $106.3 million, a 179.7% rise from the previous year's $38.0 million.…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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