Onterris (ONT) Q3 2026 earnings summary

Executive summary

• Q3 revenue fell 9.7% YoY to $203.0M as prior-year emergency recovery work normalized; Adjusted EBITDA rose 6.7% to $35.9M and adjusted EBITDA margin reached a quarterly record 17.7%.

• Core consulting and treatment growth, execution gains, favorable mix and cost discipline supported profitability; FY2026 guidance was reiterated.

Financial highlights

• Q3 Net Service Revenue rose to $162.5M from $160.5M; revenue excluding the prior-year $45.4M recovery event increased 13.1%.

• Q3 operating income rose to $12.3M from $9.9M; net income increased to $9.0M from $8.4M, and diluted EPS to $0.24 from $0.21.

• Q3 Adjusted Net Income increased to $21.3M from $14.2M; Adjusted EPS was $0.56 vs. $0.36.

• 9M revenue declined 12.4% to $558.2M; Consolidated Adjusted EBITDA was $85.6M vs. $92.3M, and net results were a $2.3M loss vs. $7.4M income.

• Q3 operating cash flow rose 46% to $40.9M from $28.1M; 9M operating cash flow was $35.4M vs. $55.5M, including $16.0M of higher bonus payments.

Outlook and guidance

• FY2026 guidance was reiterated; midpoint implies at least 150 bps of adjusted EBITDA margin expansion vs. 2025, with margin around 15.5%.

• FY2026 operating cash flow conversion is expected at 60% of Consolidated Adjusted EBITDA; year-end leverage is expected at approximately 2.5x, including acquisitions.

• Through 2030, targets are ~15% revenue CAGR and ~25% Adjusted EBITDA CAGR; the long-term ambition is not 2027 guidance.

• Management expects margins to reach the high teens to low 20% range over three to five years, with expansion not necessarily linear.