📈 Price History

Ratio Health

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About

Vestis Corporation provides uniform rentals and workplace supplies in the United States and Canada.

Key Ratios Snapshot

📈 Growth Pattern

⚡ Latest Quarter —

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⭐ Superinvestors Holding VSTS

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Manager	Shares	Value	% of Fund	Period
Jim Simons Renaissance Technologies LLC	509.1K	$4.0M	0.01%	Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

🔍 Concall Decoded

🎙 Management Tone Tracker Confident Specific ↑ Improving 3 quarters analysed

Q3 2025

Confident Vague

CEO Jim Barber repeatedly uses aspirational language like 'tremendous potential', 'sharp focus', and 'meaningful, sustainable improvement', but offers no specific targets or timelines for the initiatives, only 'we expect to see near-term financial improvement' and 'similar to Q3' for the near term.

Q1 2026

Confident Specific

Management used specific metrics (300 bps on-time improvement, 7% plant productivity, $0.02 cost per pound improvement) and described Q1 as 'early, tangible progress' while acknowledging they are still in the 'first inning' of the transformation.

Q2 2026 latest

Confident Specific

Management repeatedly cited specific operational metrics (270 bps on-time delivery improvement, 11% plant productivity, $0.02 cost per pound reduction) and gave numerical guidance raises (adjusted EBITDA midpoint up $10M, free cash flow midpoint up $85M). The tone was assertively optimistic about transformation progress, though some forward-looking statements (2027 EBITDA, merger impact) were deliberately vague.

Guidance Reliability Pending · <3Q data

Investor Lens

The investment thesis is stronger after this call. Vestis delivered its first year-over-year adjusted EBITDA growth since the spin, raised both EBITDA and free cash flow guidance significantly, and showed concrete operational improvements in service metrics and cost per pound. The narrowing of revenue per pound decline to flat and the expectation of Q4 top-line growth suggest the commercial initiatives are gaining traction. However, the transformation is still early innings, and the full benefit of cost initiatives (particularly delivery) and the impact of the pending industry merger remain uncertain. Key metrics to watch next quarter: sequential revenue growth, cost per pound trajectory, and whether free cash flow conversion can sustain near the 44% level after working capital benefits normalize.

AI-generated concall tone analysis · Updated 2026-06-09 · Not investment advice

🎙 Management Tone Confident Specific ↑ Improving 3 quarters Full tone analysis in Intelligence →

📊 MIXED Vestis Q2 adjusted EBITDA $75M, +19% YoY; first growth in over 2 years.

Revenue & Profitability

Revenue was $659 million, down 0.9% year-over-year. Net income was $2.6 million compared to a net loss of $27.8 million in the prior year. Adjusted EBITDA was $74.5 million (11.3% margin), up from $47.6 million (7.2%) in the prior year, or $62.6 million (9.4%) excluding a $15 million bad debt adjustment.

Outlook

Management expects to return to top-line growth in the fourth quarter of fiscal 2026. They are raising full-year guidance for adjusted EBITDA to $295-$325 million and free cash flow to $120-$150 million. The company sees opportunities from market consolidation, particularly the proposed merger between Synthes and UniFirst, and is receiving inbound calls from customers and employees of those companies.

Growth Drivers

Key growth levers include the Market Development Representative (MDR) program, strategic pricing, and product mix shift toward higher-margin uniforms and away from low-margin linen. New sales productivity improved 50% year-over-year. The company is also focused on deeper penetration in national accounts and field sales, with an emphasis on profitability over volume.

Balance Sheet & CapEx

In Q2, capital investments were $24.7 million, including $12.7 million in cash investments and $12 million in new finance leases for the delivery fleet. Full-year cash capital expenditure guidance is $60-$70 million. The company is also actively marketing 11 non-operating properties with an estimated value of approximately $15 million.

Margins

Adjusted EBITDA margin improved to 11.3% from 7.2% (or 9.4% on an adjusted basis) year-over-year. Operating leverage improved by $0.02 per pound, driven by a $0.02 reduction in cost per pound, with revenue per pound flat. Sequential EBITDA growth of about 5% in Q3 and 5%-10% in Q4 is expected, leading to an increased midpoint of $310 million for full-year adjusted EBITDA.

Key Risks

Risks include the regulatory process for the Synthes-UniFirst merger (FTC), potential disruption from market consolidation, and the execution of the business transformation. The company is intentionally exiting low-margin volume, which is causing a temporary decline in pounds processed. Non-regrettable churn is expected to continue as pricing floors are enforced.

Generated by AI · Q2 2026 results · Not investment advice

✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter

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📞 Earnings Call Transcripts (5)

Q3 2026 Q3 2026 2026-08-11

Adjusted EBITDA grew 23% year-over-year with margin expansion, driven by disciplined pricing, improved product mix, and operational excellence. Free cash flow guidance was raised, and transformation initiatives are delivering cost savings and improved revenue quality.

Q2 2026 Q2 2026 2026-05-12

Second quarter saw adjusted EBITDA rise 19% year-over-year to $74.5 million, with improved operating leverage and cost control. Guidance for full-year adjusted EBITDA and free cash flow was raised, and a return to top-line growth is expected in Q4 2026.

Q1 2026 Q1 2026 2026-02-10

Q1 2026 saw sequential EBITDA improvement and strong operational gains, despite a 3% revenue decline driven by product mix shifts. Guidance for 2026 is reaffirmed, with ongoing transformation expected to drive cost and revenue per pound improvements.

Q4 2025 Q4 2025 2025-12-02

Q4 2025 normalized revenue declined 3.5% year-over-year, with adjusted EBITDA at $65M and gross margin down 366 bps. A multi-year transformation plan aims for $75M in cost savings by 2026, with 2026 revenue expected flat to down 2% and adjusted EBITDA guidance of $285M–$315M.

Q3 2025 Q3 2025 2025-08-06

Q3 revenue declined 3.5% year-over-year due to higher churn and lower pricing on new contracts, with gross margin and adjusted EBITDA also down. Leadership is focused on value-based pricing, cost efficiency, and operational improvements, with near-term trends expected to persist.

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