Everforth (EFOR) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $1,031.4M and Adjusted EBITDA was $106.3M, both above guidance; the 10.3% Adjusted EBITDA margin reached the top of the guided range.

• Net income fell to $23.1M from $38.1M YoY; Adjusted EBITDA declined to $106.3M from $112.6M.

• AI, cloud, cybersecurity, IT modernization, and federal awards supported demand across Commercial and Federal markets.

Financial highlights

• Revenue was $1,031.4M vs. $1,011.4M YoY; gross profit was $291.6M vs. $296.9M.

• Net income was $23.1M vs. $38.1M; Adjusted Net Income was $45.5M vs. $57.3M, and diluted EPS was $0.56 vs. $0.87.

• Gross margin was 28.3% vs. 29.4%; Adjusted EBITDA was $106.3M vs. $112.6M, with margin of 10.3% vs. 11.1%.

• SG&A was $217.7M vs. $212.2M, including $8.3M of acquisition, integration, and strategic planning expenses.

• Operating cash flow was $58.7M vs. $83.9M; free cash flow was $46.5M vs. $72.0M.

Outlook and guidance

• Q4 revenue guidance is $965M–$995M; net income is $17.9M–$25.5M and Adjusted EBITDA is $93M–$103M, with a 9.6%–10.4% margin.

• Q4 guidance assumes 61 billable days, three fewer than Q3, current market conditions, and no further deterioration in served markets.

• Q4 includes $6.0M–$7.5M of acquisition, integration, and strategic planning expenses tied to cost-saving initiatives.

• Full-year free cash flow conversion target is 60%–65% of Adjusted EBITDA, excluding one-time strategic costs associated with transformative savings.

• A three-year plan targets Adjusted EBITDA margin of 12.5% or higher by end-2028, supported by growth, gross margin expansion, and cost savings.