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.…
Earnings analysis · 10-Q
GMRS earnings analysis
Filed August 12, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $-1.84
- Operating margin
- 3.8%
What stood out
-
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.
What to watch
-
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.
Management's outlook
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.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.