Q3 25 EPS
$-0.01
MISS 114.49%
Est. $0.07
Q3 25 Revenue
$673.8M
MISS 0.07%
Est. $674.3M
vs S&P Since Q3 25
+138.4%
BEATING MARKET
VSTS +156.8% vs S&P +18.4%
Market Reaction
Did VSTS Beat Earnings? Q3 2025 Results
Vestis Corporation delivered a deeply disappointing fiscal third quarter 2025, posting an adjusted loss of $0.01 per diluted share against a consensus estimate of $0.07, a miss of 114.49%, as persistent customer attrition continued to erode the unifo… Read more Vestis Corporation delivered a deeply disappointing fiscal third quarter 2025, posting an adjusted loss of $0.01 per diluted share against a consensus estimate of $0.07, a miss of 114.49%, as persistent customer attrition continued to erode the uniform services company's financial foundation. Revenue slipped 3.5% year-over-year to $673.80 million, fractionally below the $674.25 million analysts had expected, with the shortfall driven primarily by $14.60 million in net customer losses within the rental segment. Gross margin compressed 200 basis points to 27.0%, and adjusted EBITDA tumbled 26.3% to $64.00 million, or 9.5% of revenue, compounding concerns about the business trajectory. The results arrive amid a proposed class-action lawsuit alleging executives made misleading statements about customer health following the company's 2023 Aramark spinoff. Net leverage climbed to 4.50x, nearing the 5.25x covenant ceiling, leaving limited financial flexibility. Incoming CEO Jim Barber, roughly two months into his tenure, is conducting a strategic review, with near-term priorities centering on value-based pricing, cost-of-service improvements, and debt repayment as the company positions for a stronger fiscal 2026.
Key Takeaways
- • Net customer losses of $14.6 million drove rental revenue decline
- • Loss of a national account customer caused $4.3 million decline in direct sales
- • Decreased customer penetration of $3.4 million including $3.8 million favorable YoY impact from one-time loss and ruin
- • Gross margin compression of 200 basis points from decremental margin on lost revenues and unfavorable product mix
- • $9 million in cost productivity improvements partially offset revenue declines
- • SG&A decreased $7.7 million YoY from lower share-based compensation and separation costs
- • Interest expense declined $7.4 million YoY due to lower net term loan borrowings
- • Increased selling expenses from additional field sales personnel of $4.5 million
VSTS YoY Financials
Q3 2025 vs Q3 2024, source: SEC Filings
VSTS Revenue by Segment
With YoY comparisons, source: SEC Filings
VSTS Revenue by Geography
With YoY comparisons, source: SEC Filings
“I'm pleased that our third quarter results were in line with our expectations and that we generated positive cash flow during the period. Our team has been focused on taking comprehensive actions designed to strengthen our overall results and create long-term shareholder value by unlocking operating leverage through commercial and operational excellence.”
— Jim Barber, Q3 2025 Earnings Press Release
VSTS Earnings Trends
VSTS vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
VSTS EPS Trend
Earnings per share: estimate vs actual
VSTS Revenue Trend
Quarterly revenue: estimate vs actual
VSTS Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 BEAT | $0.08 | $0.16 | +92.08% | $659.4M | +0.53% |
| Q1 26 BEAT | $0.09 | $0.10 | +5.82% | $663.4M | -1.64% |
| Q4 25 MISS FY | $0.06 | $0.03 | -48.28% | $712.0M | +3.09% |
| FY Full Year | $0.23 | $0.25 | +7.85% | $2.73B | +0.91% |
| Q3 25 MISS | $0.07 | $-0.01 | -114.49% | $673.8M | -0.07% |
| Q2 25 MISS | $0.15 | $-0.05 | -133.81% | $665.2M | -3.70% |