Vestis (VSTS) Q2 2025

Q2 2026 Q1 2026 Q4 2025 Q3 2025 Q2 2025

Earnings

Vestis Corporation delivered a sharply disappointing fiscal second quarter 2025, swinging to a loss of $0.05 per diluted share against a consensus estimate of $0.15, a miss of 133.81%, while revenue fell 5.7% year-over-year to $665.25 million, coming… Read more Vestis Corporation delivered a sharply disappointing fiscal second quarter 2025, swinging to a loss of $0.05 per diluted share against a consensus estimate of $0.15, a miss of 133.81%, while revenue fell 5.7% year-over-year to $665.25 million, coming in 3.70% below the $690.81 million analysts had expected. The primary culprit was a combination of net customer losses outpacing new wins, weaker volumes from existing accounts, and a $15.00 million one-time bad debt reserve charge that, alongside roughly $10.00 million in executive exit costs, pushed the company to an operating loss of $8.57 million versus operating income of $43.05 million a year ago. Adjusted EBITDA cratered 45% to $47.62 million, and Moody's responded by downgrading Vestis's corporate family rating to B2, citing diminished earnings expectations through 2026. The company eliminated its dividend and restricted buybacks as it works to reduce net leverage from 4.16x toward a long-term target below 3.0x, while guiding for fiscal Q3 revenue of $674 million to $682 million and Adjusted EBITDA of at least $63 million.