Onterris (ONT) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $168.5 million, down 5.2% year-over-year, mainly due to lower emergency response and weather-related delays, but underlying demand and project pipeline remain strong.

• Net loss improved to $12.7 million ($0.35 per share) from $19.4 million ($0.64 per share) in Q1 2025, driven by operating efficiency and lower expenses.

• Adjusted EBITDA was $17.8 million (10.6% margin), above expectations, reflecting improved operating efficiency and cost discipline.

• The company rebranded to Onterris, consolidating legacy brands and realigning segments to Consulting and Treatment and Measurement and Analysis.

• Full-year 2026 guidance is reiterated, with revenue expected at $840–$900 million and adjusted EBITDA at $125–$130 million.

Financial highlights

• Q1 2026 revenue decreased 5.2% year-over-year, primarily due to a $5.8 million drop in emergency response and $5.1 million weather-related decline in Measurement and Analysis.

• Consulting and Treatment segment revenue was $114.6 million, down from $118.8 million, but segment-adjusted EBITDA margin improved to 17.6%.

• Measurement and Analysis segment revenue was $53.9 million, with margin declining to 18.4% from 23.3% due to weather impacts.

• Diluted net loss per share improved to $0.35 from $0.64 year-over-year; adjusted EPS rose to $0.12 from $0.07.

• Operating cash flow was negative $11.6 million, mainly due to higher bonus payments and seasonal working capital; free cash flow was negative $17.2 million.

Outlook and guidance

• Full-year 2026 guidance for revenue ($840–$900 million) and adjusted EBITDA ($125–$130 million) is unchanged, with organic revenue growth of 8% at midpoint.

• Q2 2026 revenue expected between $190–$210 million, with adjusted EBITDA margin of 16–18%.

• Revenue and EBITDA growth expected to accelerate in Q2 and continue through the year as delayed projects are executed.

• At least 60% of adjusted EBITDA is expected to convert to operating cash flow for the full year.

• Plans to resume smaller, highly accretive acquisitions in 2026, subject to capital priorities and leverage.