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-impacted Measurement and Analysis revenues, but underlying demand and project pipeline remain strong.

• Net loss attributable to common stockholders improved to $12.7 million ($0.35 per share) from $22.1 million ($0.64 per share) in Q1 2025, driven by operating efficiency and lower expenses.

• Adjusted EBITDA was $17.8 million (10.6% margin), exceeding or meeting expectations, reflecting improved operating efficiency.

• Completed rebranding to Onterris in April 2026, consolidating legacy brands and realigning segments to enhance cross-functional collaboration and operational efficiency.

• Full-year 2026 guidance is unchanged, with significant revenue and EBITDA growth expected in the second half as delayed projects are executed.

Financial highlights

• Q1 2026 revenue: $168.5 million, down 5.2% year-over-year, primarily from a $5.8 million drop in emergency response and $5.1 million weather-related decline in Measurement and Analysis.

• Adjusted EBITDA: $17.8 million (10.6% margin), compared to $19 million (10.7%) in prior year.

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

• Ended quarter with $10 million cash and $188 million total liquidity; leverage ratio at 2.8x.

Outlook and guidance

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

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

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

• Revenue and project activity delayed in Q1 are expected to be evenly split between Q3 and Q4.

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