Prestige Consumer Healthcare Inc. Reports Fiscal 2026 First Quarter Results
Prestige Consumer Healthcare (NYSE:PBH) reported Q1 fiscal 2026 results with revenue of $249.5 million, down 6.6% year-over-year, primarily due to Clear Eyes supply constraints. The company posted diluted EPS of $0.95, up 6% from the prior year.
In a strategic move, PBH announced the acquisition of Pillar5 Pharma, their current eye care supplier, expected to close in Q3 fiscal 2026. The company revised its fiscal 2026 outlook, lowering revenue guidance to $1,100-$1,115 million from $1,140-$1,155 million, and adjusted EPS guidance to $4.50-$4.58 from $4.70-$4.82.
Despite challenges, the company demonstrated strength in international segment growth, improved gross margins, and generated strong free cash flow of $78.2 million. The company maintains a healthy balance sheet with a covenant-defined leverage ratio of 2.4x.
Prestige Consumer Healthcare (NYSE:PBH) ha riportato i risultati del primo trimestre dell'anno fiscale 2026 con un fatturato di 249,5 milioni di dollari, in calo del 6,6% rispetto all'anno precedente, principalmente a causa di problemi di fornitura di Clear Eyes. L'azienda ha registrato un utile per azione diluito di 0,95 dollari, in aumento del 6% rispetto all'anno precedente.
In una mossa strategica, PBH ha annunciato l'acquisizione di Pillar5 Pharma, attuale fornitore di prodotti per la cura degli occhi, con chiusura prevista nel terzo trimestre dell'anno fiscale 2026. L'azienda ha rivisto le previsioni per l'anno fiscale 2026, riducendo le stime di fatturato a 1.100-1.115 milioni di dollari rispetto a 1.140-1.155 milioni, e aggiustando le previsioni di utile per azione a 4,50-4,58 dollari rispetto a 4,70-4,82.
Nonostante le difficoltà, l'azienda ha mostrato solidità nella crescita del segmento internazionale, miglioramento dei margini lordi e ha generato un forte flusso di cassa libero di 78,2 milioni di dollari. L'azienda mantiene un bilancio sano con un indice di leva finanziaria definito dai covenant pari a 2,4x.
Prestige Consumer Healthcare (NYSE:PBH) reportó los resultados del primer trimestre del año fiscal 2026 con ingresos de 249,5 millones de dólares, una disminución del 6,6% interanual, principalmente debido a limitaciones en el suministro de Clear Eyes. La compañía registró una utilidad diluida por acción de 0,95 dólares, un aumento del 6% respecto al año anterior.
En un movimiento estratégico, PBH anunció la adquisición de Pillar5 Pharma, su actual proveedor de cuidado ocular, que se espera cierre en el tercer trimestre del año fiscal 2026. La empresa revisó sus perspectivas para el año fiscal 2026, reduciendo la guía de ingresos a 1.100-1.115 millones de dólares desde 1.140-1.155 millones, y ajustando la guía de utilidad por acción a 4,50-4,58 dólares desde 4,70-4,82.
A pesar de los desafíos, la compañía mostró fortaleza en el crecimiento del segmento internacional, mejoró los márgenes brutos y generó un sólido flujo de caja libre de 78,2 millones de dólares. La empresa mantiene un balance saludable con una ratio de apalancamiento definido por convenios de 2,4x.
Prestige Consumer Healthcare (NYSE:PBH)� 2026 회계연도 1분기 실적� 발표하며 매출액이 2� 4,950� 달러� 전년 대� 6.6% 감소했다� 밝혔습니�. 이는 주로 Clear Eyes 공급 제약 때문입니�. 희석 주당순이�(EPS)은 0.95달러� 전년 대� 6% 증가했습니다.
전략� 조치� PBH� 현재 안과용품 공급업체� Pillar5 Pharma� 인수한다� 발표했으�, 인수� 2026 회계연도 3분기� 완료� 예정입니�. 회사� 2026 회계연도 전망� 수정하여 매출 가이드� 기존 11� 4천만~11� 5� 5백만 달러에서 11억~11� 1,150� 달러� 낮추�, EPS 가이드� 4.504.58달러� 조정했습니다.
어려움에도 불구하고 회사� 국제 부� 성장, 개선� 총이익률, 그리� 7,820� 달러� 강력� 자유 현금 흐름� 보여주었습니�. 회사� 계약서상 레버리지 비율 2.4배로 건전� 재무 상태� 유지하고 있습니다.
Prestige Consumer Healthcare (NYSE:PBH) a publié ses résultats pour le premier trimestre de l'exercice 2026 avec un chiffre d'affaires de 249,5 millions de dollars, en baisse de 6,6 % sur un an, principalement en raison de contraintes d'approvisionnement de Clear Eyes. La société a enregistré un BPA dilué de 0,95 dollar, en hausse de 6 % par rapport à l'année précédente.
Dans une démarche stratégique, PBH a annoncé l'acquisition de Pillar5 Pharma, leur fournisseur actuel de soins oculaires, dont la finalisation est prévue au troisième trimestre de l'exercice 2026. La société a révisé ses prévisions pour l'exercice 2026, abaissant son objectif de chiffre d'affaires à 1 100-1 115 millions de dollars contre 1 140-1 155 millions, et ajustant ses prévisions de BPA à 4,50-4,58 dollars contre 4,70-4,82.
Malgré les défis, l'entreprise a démontré une solidité dans la croissance du segment international, une amélioration des marges brutes, et a généré un flux de trésorerie disponible solide de 78,2 millions de dollars. La société maintient un bilan sain avec un ratio d'endettement défini par les covenants de 2,4x.
Prestige Consumer Healthcare (NYSE:PBH) meldete die Ergebnisse für das erste Quartal des Geschäftsjahres 2026 mit einem Umsatz von 249,5 Millionen US-Dollar, was einem Rückgang von 6,6 % im Jahresvergleich entspricht, hauptsächlich aufgrund von Lieferengpässen bei Clear Eyes. Das Unternehmen verzeichnete einen verwässerten Gewinn je Aktie (EPS) von 0,95 US-Dollar, was einer Steigerung von 6 % gegenüber dem Vorjahr entspricht.
In einem strategischen Schritt kündigte PBH die Übernahme von Pillar5 Pharma an, ihrem derzeitigen Lieferanten für Augenpflegeprodukte, die voraussichtlich im dritten Quartal des Geschäftsjahres 2026 abgeschlossen wird. Das Unternehmen hat seine Prognose für das Geschäftsjahr 2026 angepasst und die Umsatzprognose von 1.140-1.155 Millionen US-Dollar auf 1.100-1.115 Millionen US-Dollar gesenkt sowie die EPS-Prognose von 4,70-4,82 US-Dollar auf 4,50-4,58 US-Dollar korrigiert.
Trotz Herausforderungen zeigte das Unternehmen Stärke im internationalen Segmentwachstum, verbesserte Bruttomargen und erzielte einen starken freien Cashflow von 78,2 Millionen US-Dollar. Das Unternehmen hält eine gesunde Bilanz mit einem vertraglich definierten Verschuldungsgrad von 2,4x.
- Strong free cash flow of $78.2 million, up significantly from $53.6 million in prior year
- International OTC Healthcare segment grew 6.1% to $37.0 million
- Year-over-year improvement in gross margin
- Strategic acquisition of Pillar5 Pharma to secure long-term eye care production capacity
- Lower interest expense contributing to improved financial profile
- Revenue declined 6.6% to $249.5 million due to eye care supply constraints
- Net income decreased to $47.5 million from $49.1 million year-over-year
- Lowered fiscal 2026 revenue guidance by approximately $40 million
- Reduced EPS guidance from $4.70-$4.82 to $4.50-$4.58
- Expected negative organic revenue growth of -1.5% to -3.0% for fiscal 2026
Insights
PBH reports declining Q1 revenue due to eye care supply issues; acquiring supplier Pillar5 to stabilize production; lowers FY2026 guidance.
Prestige Consumer Healthcare's Q1 fiscal 2026 results reveal a challenging start to the year with revenue declining 6.6% to
The most strategically significant announcement is PBH's agreement to acquire Pillar5 Pharma, their current eye care supplier. This vertical integration move directly addresses their supply chain vulnerabilities, as Clear Eyes is Pillar5's largest revenue source. Management expects this acquisition to be EPS-neutral initially, with closing anticipated in Q3 fiscal 2026.
PBH's financial health remains solid despite the revenue challenges, with Q1 free cash flow increasing dramatically to
Looking at segment performance, North American OTC Healthcare revenue fell to
The temporary nature of the supply constraints, coupled with the strategic acquisition to ensure future supply stability, suggests this is a tactical setback rather than a fundamental business deterioration. Management's expectation for improved second-half performance indicates they view this as a transitional period that will strengthen their long-term competitive position in the eye care category.
- Revenue of
$249.5 million in Q1; decline driven by limited eye care supply - Diluted EPSrticles/eps-explained-simple-example" title="Read: EPS Explained with a Simple Example: The Most Important Stock Metric" class="article-link" rel="noopener">Diluted EPS of
$0.95 in Q1, up approximately6% versus prior year Adjusted Diluted EPSrticles/eps-explained-simple-example" title="Read: EPS Explained with a Simple Example: The Most Important Stock Metric" class="article-link" rel="noopener">Diluted EPS of$0.90 - Announces agreement to acquire current eye care supplier Pillar5 Pharma
- Revising fiscal 2026 revenue outlook to
$1,100 t o$1,115 million and Diluted EPSrticles/eps-explained-simple-example" title="Read: EPS Explained with a Simple Example: The Most Important Stock Metric" class="article-link" rel="noopener">Diluted EPS outlook to$4.50 t o$4.58
TARRYTOWN, N.Y., Aug. 07, 2025 (GLOBE NEWSWIRE) -- Prestige Consumer Healthcare Inc. (NYSE:PBH) today reported financial results for its first quarter fiscal 2026 ended June 30, 2025.
“We experienced momentum in multiple areas of our business in the first quarter, including strong international segment growth, year-over-year improvement in gross margin, and solid quarterly free cash flow. Unfortunately, these positives were offset by Clear Eyes supply constraints, which resulted in lower-than-expected shipments. As we look forward, we continue to expect planned improvements in eye care supply in the second half, further helped by this morning’s announcement to acquire Pillar5. In addition, we believe the benefits of our diverse portfolio, financial profile and free cash flow should continue to drive long-term shareholder value,� said Ron Lombardi, Chief Executive Officer of Prestige Consumer Healthcare.
First Fiscal Quarter Ended June 30, 2025
Reported revenues in the first quarter of fiscal 2026 of
Reported net income for the first quarter of fiscal 2026 totaled
The adjustment to the first quarter of fiscal 2025 relates to a discrete tax item pertaining to the release of a reserve for an uncertain tax position due to the statute of limitations expiring.
Free Cash Flow and Balance Sheet
The Company's net cash provided by operating activities for the first quarter of fiscal 2026 was
In fiscal 2025, the Company repurchased approximately 0.4 million shares at a total investment of approximately
Segment Review
North American OTC Healthcare: Segment revenues of
International OTC Healthcare: Fiscal first quarter 2026 revenues of
Acquisition of Supplier Pillar5 Pharma
As part of a long-term strategy to expand eye care production capacity, the Company has entered into a definitive agreement to acquire Pillar5 Pharma Inc. (“Pillar5�), a leading sterile ophthalmic manufacturer and current Clear Eyes supplier from ANJAC SAS, a French family-owned industrial group with production sites across health, beauty, personal care and food supplements. Clear Eyes is the largest revenue source for Pillar5. The transaction is expected to be approximately neutral to EPS and is expected to close in the third quarter fiscal 2026 based on fulfillment of certain closing conditions.
Based in Ontario, Canada, Pillar5 is a well-established key manufacturer of multi-dose sterile OTC ophthalmic products, which represents the majority of revenue, as well as a producer of certain solid dose products.
Updated Fiscal 2026 Initial Outlook
“Although we are disappointed with our start to fiscal 2026 due to our eye care category performance, we are pleased to announce the acquisition of Pillar5 from ANJAC, who has been a valued partner in producing Clear Eyes since 2016. The acquisition of a sterile eye care manufacturing site is a strategic component to our objective of securing near-term supply and building long-term supply chain capacity to meet the robust demand we anticipate for Clear Eyes. While we expect third party partner manufacturing to remain complementary to our production at Pillar5, we believe securing an internal source of reliable sterile eye manufacturing best supports our eye care business and further enables our long-term growth opportunities,� said Ron Lombardi, Chief Executive Officer of Prestige Consumer Healthcare.
He continued, “Primarily to reflect the supply chain shortfalls in eye care that are expected to persist in the first half of fiscal 2026, we now anticipate revenue of
Initial Fiscal 2026 Outlook | Current Fiscal 2026 Outlook | |
Revenue | ||
Organic Revenue Growth | Approximately | Approximate |
Diluted E.P.S. | ||
Free Cash Flow | ||
First Quarter Fiscal 2026 Conference Call, Accompanying Slide Presentation and Replay
The Company will host a conference call to review its first quarter fiscal 2026 results today, August 7, 2025 at 8:30 a.m. ET. The Company provides a live Internet webcast, a slide presentation to accompany the call, as well as an archived replay, all of which can be accessed from the Investor Relations page of the Company's website at . To participate in the conference call via phone, participants may register for the call to receive dial-in details and a unique pin. While not required, it is recommended to join 10 minutes prior to the event start. The slide presentation can be accessed from the Investor Relations page of the Company’s website by clicking on Webcasts and Presentations.
A conference call replay will be available for approximately one week following completion of the live call and can be accessed on the Company’s Investor Relations page.
Non-GAAP and Other Financial Information
In addition to financial results reported in accordance with generally accepted accounting principles (GAAP), we have provided certain non-GAAP financial information in this release to aid investors in understanding the Company's performance. Each non-GAAP financial measure is defined and reconciled to its most closely related GAAP financial measure in the “About Non-GAAP Financial Measures� section at the end of this earnings release.
Note Regarding Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of the federal securities laws that are intended to qualify for the Safe Harbor from liability established by the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" generally can be identified by the use of forward-looking terminology such as "guidance," "outlook," "may," "will," "would," “believe,� "expect," “look forward,� "anticipate,� “planned,� “positioned,� or "continue" (or the negative or other derivatives of each of these terms) or similar terminology. The "forward-looking statements" include, without limitation, statements regarding the Company's future operating results including revenues, organic growth, diluted earnings per share, and free cash flow; the expected impact of Pillar5 on the Company’s revenue and EPS; the timing of the closing of Pillar5; the continued reliance on third-party manufacturing and the impact of acquiring Pillar5 on the supply of eye care products; and the Company’s ability to enhance shareholder value through its business strategy, diverse product portfolio, solid balance sheet, generation of free cash flow, and efficient capital allocation. These statements are based on management's estimates and assumptions with respect to future events and financial performance and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results could differ materially from those expected as a result of a variety of factors, including the impact of business and economic conditions, including as a result of evolving U.S. and international tariffs, labor shortages, inflation and geopolitical instability, consumer trends, the impact of the Company’s advertising and marketing and new product development initiatives, customer inventory management initiatives, fluctuating foreign exchange rates, competitive pressures, the ability to meet Pillar5 closing conditions, and the ability of the Company’s manufacturing operations and third party manufacturers and logistics providers and suppliers to meet demand for its products and to avoid inflationary cost increases and disruption as a result of labor shortages. A discussion of other factors that could cause results to vary is included in the Company's Annual Report on Form 10-K for the year ended March 31, 2025 and other periodic reports filed with the Securities and Exchange Commission.
About Prestige Consumer Healthcare Inc.
Prestige Consumer Healthcare is a leading consumer healthcare products company with sales throughout the U.S. and Canada, Australia, and in certain other international markets. The Company’s diverse portfolio of brands include Monistat® and Summer’s Eve® women's health products, BC® and Goody's® pain relievers, Clear Eyes® and TheraTears® eye care products, DenTek® specialty oral care products, Dramamine® motion sickness treatments, Fleet® enemas and glycerin suppositories, Chloraseptic® and Luden's® sore throat treatments and drops, Compound W® wart treatments, Little Remedies® pediatric over-the-counter products, Boudreaux’s Butt Paste® diaper rash ointments, Nix® lice treatment, Debrox® earwax remover, Gaviscon® antacid in Canada, and Hydralyte® rehydration products and the Fess® line of nasal and sinus care products in Australia. Visit the Company's website at www.prestigeconsumerhealthcare.com
Prestige Consumer Healthcare Inc. | |||||||
Condensed Consolidated Statements of Income and Comprehensive Income | |||||||
(Unaudited) | |||||||
Three Months Ended June 30, | |||||||
(In thousands, except per share data) | 2025 | 2024 | |||||
Total Revenues | $ | 249,530 | $ | 267,142 | |||
Cost of Sales | |||||||
Cost of sales excluding depreciation | 106,715 | 118,697 | |||||
Cost of sales depreciation | 2,484 | 2,423 | |||||
Cost of sales | 109,199 | 121,120 | |||||
Gross profit | 140,331 | 146,022 | |||||
Operating Expenses | |||||||
Advertising and marketing | 34,937 | 39,365 | |||||
General and administrative | 28,456 | 28,910 | |||||
Depreciation and amortization | 5,182 | 5,701 | |||||
Total operating expenses | 68,575 | 73,976 | |||||
Operating income | 71,756 | 72,046 | |||||
Other expense | |||||||
Interest expense, net | 10,203 | 13,137 | |||||
Other (income) expense, net | (224 | ) | 496 | ||||
Total other expense, net | 9,979 | 13,633 | |||||
Income before income taxes | 61,777 | 58,413 | |||||
Provision for income taxes | 14,311 | 9,345 | |||||
Net income | $ | 47,466 | $ | 49,068 | |||
Earnings per share: | |||||||
Basic | $ | 0.96 | $ | 0.98 | |||
Diluted | $ | 0.95 | $ | 0.98 | |||
Weighted average shares outstanding: | |||||||
Basic | 49,475 | 49,886 | |||||
Diluted | 49,833 | 50,267 | |||||
Comprehensive income, net of tax: | |||||||
Currency translation adjustments | 5,404 | 3,160 | |||||
Total other comprehensive income | 5,404 | 3,160 | |||||
Comprehensive income | $ | 52,870 | $ | 52,228 |
Prestige Consumer Healthcare Inc. | |||||
Condensed Consolidated Balance Sheets | |||||
(Unaudited) | |||||
(In thousands) | June 30, 2025 | March 31, 2025 | |||
Assets | |||||
Current assets | |||||
Cash and cash equivalents | $ | 139,502 | $ | 97,884 | |
Accounts receivable, net of allowance of | 168,405 | 194,293 | |||
Inventories | 153,126 | 147,709 | |||
Prepaid expenses and other current assets | 19,485 | 8,442 | |||
Total current assets | 480,518 | 448,328 | |||
Property, plant and equipment, net | 73,786 | 74,548 | |||
Operating lease right-of-use assets | 26,918 | 28,238 | |||
Finance lease right-of-use assets, net | 24,236 | 25,056 | |||
Goodwill | 528,314 | 527,425 | |||
Intangible assets, net | 2,294,829 | 2,295,350 | |||
Other long-term assets | 3,024 | 3,273 | |||
Total Assets | $ | 3,431,625 | $ | 3,402,218 | |
Liabilities and Stockholders' Equity | |||||
Current liabilities | |||||
Accounts payable | 22,206 | 18,925 | |||
Accrued interest payable | 15,078 | 15,703 | |||
Operating lease liabilities, current portion | 6,072 | 6,047 | |||
Finance lease liabilities, current portion | 2,530 | 2,490 | |||
Other accrued liabilities | 63,782 | 63,458 | |||
Total current liabilities | 109,668 | 106,623 | |||
Long-term debt, net | 992,749 | 992,357 | |||
Deferred income tax liabilities | 426,947 | 419,594 | |||
Long-term operating lease liabilities, net of current portion | 21,397 | 22,732 | |||
Long-term finance lease liabilities, net of current portion | 19,976 | 20,624 | |||
Other long-term liabilities | 5,406 | 5,391 | |||
Total Liabilities | 1,576,143 | 1,567,321 | |||
Total Stockholders' Equity | 1,855,482 | 1,834,897 | |||
Total Liabilities and Stockholders' Equity | $ | 3,431,625 | $ | 3,402,218 |
Prestige Consumer Healthcare Inc. | |||||||
Condensed Consolidated Statements of Cash Flows | |||||||
(Unaudited) | |||||||
Three Months Ended June 30, | |||||||
(In thousands) | 2025 | 2024 | |||||
Operating Activities | |||||||
Net income | $ | 47,466 | $ | 49,068 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 7,666 | 8,124 | |||||
Loss on disposal of property and equipment | � | 5 | |||||
Deferred and other income taxes | 5,827 | 612 | |||||
Amortization of debt origination costs | 442 | 454 | |||||
Stock-based compensation costs | 3,682 | 3,425 | |||||
Non-cash operating lease cost | 1,947 | 1,706 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 27,343 | 6,368 | |||||
Inventories | (4,441 | ) | (13,048 | ) | |||
Prepaid expenses and other current assets | (10,946 | ) | 2,359 | ||||
Accounts payable | 2,756 | 591 | |||||
Accrued liabilities | (813 | ) | (2,061 | ) | |||
Operating lease liabilities | (1,916 | ) | (1,883 | ) | |||
Other | � | (944 | ) | ||||
Net cash provided by operating activities | 79,013 | 54,776 | |||||
Investing Activities | |||||||
Purchases of property, plant and equipment | (838 | ) | (1,152 | ) | |||
Other | (1,100 | ) | (978 | ) | |||
Net cash used in investing activities | (1,938 | ) | (2,130 | ) | |||
Financing Activities | |||||||
Term loan repayments | � | (35,000 | ) | ||||
Payments of finance leases | (608 | ) | (720 | ) | |||
Proceeds from exercise of stock options | 3,155 | 1,975 | |||||
Fair value of shares surrendered as payment of tax withholding | (4,054 | ) | (5,801 | ) | |||
Repurchase of common stock | (34,775 | ) | (25,976 | ) | |||
Net cash used in financing activities | (36,282 | ) | (65,522 | ) | |||
Effects of exchange rate changes on cash and cash equivalents | 825 | 663 | |||||
Increase in cash and cash equivalents | 41,618 | (12,213 | ) | ||||
Cash and cash equivalents - beginning of period | 97,884 | 46,469 | |||||
Cash and cash equivalents - end of period | $ | 139,502 | $ | 34,256 | |||
Interest paid | $ | 11,501 | $ | 13,670 | |||
Income taxes paid | $ | 3,253 | $ | 3,661 |
Prestige Consumer Healthcare Inc. | ||||||||
Condensed Consolidated Statements of Income | ||||||||
Business Segments | ||||||||
(Unaudited) | ||||||||
Three Months Ended June 30, 2025 | ||||||||
(In thousands) | North American OTC Healthcare | International OTC Healthcare | Consolidated | |||||
Total segment revenues* | $ | 212,578 | $ | 36,952 | $ | 249,530 | ||
Cost of sales | 92,178 | 17,021 | 109,199 | |||||
Gross profit | 120,400 | 19,931 | 140,331 | |||||
Advertising and marketing | 28,954 | 5,983 | 34,937 | |||||
Contribution margin | $ | 91,446 | $ | 13,948 | $ | 105,394 | ||
Other operating expenses | 33,638 | |||||||
Operating income | $ | 71,756 |
*Intersegment revenues of
Three Months Ended June 30, 2024 | ||||||||
(In thousands) | North American OTC Healthcare | International OTC Healthcare | Consolidated | |||||
Total segment revenues* | $ | 232,316 | $ | 34,826 | $ | 267,142 | ||
Cost of sales | 105,559 | 15,561 | 121,120 | |||||
Gross profit | 126,757 | 19,265 | 146,022 | |||||
Advertising and marketing | 33,753 | 5,612 | 39,365 | |||||
Contribution margin | $ | 93,004 | $ | 13,653 | $ | 106,657 | ||
Other operating expenses | 34,611 | |||||||
Operating income | $ | 72,046 |
* Intersegment revenues of
About Non-GAAP Financial Measures
In addition to financial results reported in accordance with GAAP, we disclose certain Non-GAAP financial measures ("NGFMs"), including, but not limited to, Non-GAAP Organic Revenues, Non-GAAP Organic Revenue Change Percentage, Non-GAAP EBITDA, Non-GAAP EBITDA Margin, Non-GAAP Adjusted Net Income, Non-GAAP Adjusted Diluted EPS, Non-GAAP Free Cash Flow, and Net Debt. We use these NGFMs internally, along with GAAP information, in evaluating our operating performance and in making financial and operational decisions. We believe that the presentation of these NGFMs provides investors with greater transparency, and provides a more complete understanding of our business than could be obtained absent these disclosures, because the supplemental data relating to our financial condition and results of operations provides additional ways to view our operation when considered with both our GAAP results and the reconciliations below. In addition, we believe that the presentation of each of these NGFMs is useful to investors for period-to-period comparisons of results in assessing shareholder value, and we use these NGFMs internally to evaluate the performance of our personnel and also to evaluate our operating performance and compare our performance to that of our competitors.
These NGFMs are not in accordance with GAAP, should not be considered as a measure of profitability or liquidity, and may not be directly comparable to similarly titled NGFMs reported by other companies. These NGFMs have limitations and they should not be considered in isolation from or as an alternative to their most closely related GAAP measures reconciled below. Investors should not rely on any single financial measure when evaluating our business. We recommend investors review the GAAP financial measures included in this earnings release. When viewed in conjunction with our GAAP results and the reconciliations below, we believe these NGFMs provide greater transparency and a more complete understanding of factors affecting our business than GAAP measures alone.
NGFMs Defined
We define our NGFMs presented herein as follows:
- Non-GAAP Organic Revenues: GAAP Total Revenues excluding the impact of foreign currency exchange rates in the periods presented.
- Non-GAAP Organic Revenue Change Percentage: Calculated as the change in Non-GAAP Organic Revenues from prior year divided by prior year Non-GAAP Organic Revenues.
- Non-GAAP EBITDA: GAAP Net Income before interest expense, net, provision for income taxes, and depreciation and amortization.
- Non-GAAP EBITDA Margin: Calculated as Non-GAAP EBITDA divided by GAAP Total Revenues.
- Non-GAAP Adjusted Net Income: GAAP Net Income adjusted for a normalized tax rate.
- Non-GAAP Adjusted Diluted EPS: Calculated as Non-GAAP Adjusted Net Income, divided by the diluted weighted average number of shares outstanding during the period.
- Non-GAAP Free Cash Flow: Calculated as GAAP Net cash provided by operating activities less cash paid for capital expenditures.
- Net Debt: Calculated as total principal amount of debt outstanding (
$1,000,000 at June30, 2025) less cash and cash equivalents ($139,502 at June30, 2025). Amounts in thousands.
The following tables set forth the reconciliations of each of our NGFMs (other than Net Debt, which is reconciled above) to their most directly comparable financial measures presented in accordance with GAAP.
Reconciliation of GAAP Total Revenues to Non-GAAP Organic Revenues and related Non-GAAP Organic Revenue Change percentage:
Three Months Ended June 30, | |||||||
2025 | 2024 | ||||||
(In thousands) | |||||||
GAAP Total Revenues | $ | 249,530 | $ | 267,142 | |||
Revenue Change | (6.6)% | ||||||
Adjustments: | |||||||
Impact of foreign currency exchange rates | � | (670 | ) | ||||
Total adjustments | � | (670 | ) | ||||
Non-GAAP Organic Revenues | $ | 249,530 | $ | 266,472 | |||
Non-GAAP Organic Revenue Change | (6.4)% |
Reconciliation of GAAP Net Income to Non-GAAP EBITDA and related Non-GAAP EBITDA Margin:
Three Months Ended June 30, | ||||||||
2025 | 2024 | |||||||
(In thousands) | ||||||||
GAAP Net Income | $ | 47,466 | $ | 49,068 | ||||
Interest expense, net | 10,203 | 13,137 | ||||||
Provision for income taxes | 14,311 | 9,345 | ||||||
Depreciation and amortization | 7,666 | 8,124 | ||||||
Non-GAAP EBITDA | $ | 79,646 | $ | 79,674 | ||||
Non-GAAP EBITDA Margin | 31.9 | % | 29.8 | % | ||||
Reconciliation of GAAP Net Income and GAAP Diluted Earnings Per Share to Non-GAAP Adjusted Net Income and related Non-GAAP Adjusted Diluted Earnings Per Share:
Three Months Ended June 30, | ||||||||||||
2025 | 2025 Diluted EPS | 2024 | 2024 Diluted EPS | |||||||||
(In thousands, except per share data) | ||||||||||||
GAAP Net Income and Diluted EPS | $ | 47,466 | $ | 0.95 | $ | 49,068 | $ | 0.98 | ||||
Adjustments: | ||||||||||||
Normalized tax rate adjustment (1) | � | � | (4,030 | ) | $ | (0.08 | ) | |||||
Total adjustments | � | � | (4,030 | ) | (0.08 | ) | ||||||
Non-GAAP Adjusted Net Income and Adjusted Diluted EPS | $ | 47,466 | $ | 0.95 | $ | 45,038 | $ | 0.90 |
(1) Income tax adjustment to adjust for discrete income tax items.
Reconciliation of GAAP Net Income to Non-GAAP Free Cash Flow:
Three Months Ended June 30, | ||||||||
2025 | 2024 | |||||||
(In thousands) | ||||||||
GAAP Net Income | $ | 47,466 | $ | 49,068 | ||||
Adjustments: | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities as shown in the Statement of Cash Flows | 19,564 | 14,326 | ||||||
Changes in operating assets and liabilities as shown in the Statement of Cash Flows | 11,983 | (8,618 | ) | |||||
Total adjustments | 31,547 | 5,708 | ||||||
GAAP Net cash provided by operating activities | 79,013 | 54,776 | ||||||
Purchases of property and equipment | (838 | ) | (1,152 | ) | ||||
Non-GAAP Free Cash Flow | $ | 78,175 | $ | 53,624 | ||||
Outlook for Fiscal Year 2026:
Reconciliation of Projected GAAP Net cash provided by operating activities to Projected Non-GAAP Free Cash Flow:
(In millions) | |||
Projected FY'26 GAAP Net cash provided by operating activities | $ | 255 | |
Additions to property and equipment for cash | (10 | ) | |
Projected FY'26 Non-GAAP Free Cash Flow | $ | 245 |
Investor Relations Contact
Phil Terpolilli, CFA, 914-524-6819
