v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Information
Note 13—Segment Information

The Company manages and evaluates its operations in two reportable segments: Environmental Services (housekeeping, laundry, linen and other services) and Dietary (dietary department services). Although both segments serve a similar customer base and share many operational similarities, they are managed separately due to distinct differences in the type of services provided, as well as the specialized expertise required of the professional management personnel responsible for delivering each segment’s services. Such services are rendered pursuant to discrete contracts, specific to each reportable segment.

The Chief Operating Decision Maker (“CODM”) for both segments for each of the three and six months ended June 30, 2026 and 2025 was Theodore Wahl, the Company’s President and Chief Executive Officer. The Company’s CODM does not review assets by segment to assess segment performance or allocate resources, nor is such information provided to the CODM. Accordingly, the Company does not present assets by segment.

The Company’s significant segment expenses for each segment include direct labor costs and segment-based management expenses (collectively, “labor and labor-related”), food, chemicals and supplies, bad debt expense, and depreciation & amortization, as these are specific costs regularly provided to the CODM and used to evaluate segment performance. Other segment items include expenses recorded within costs of services provided which are not regularly provided to the CODM. The CODM evaluates segment profit each period against historical results, factoring in macroeconomic factors such as the cost of labor and supplies, to assess segment performance.

The Company’s accounting policies for the segments are generally the same as described in the Company’s significant accounting policies. The Company does not allocate Corporate expenses, gains (losses) on deferred compensation plan investments, other (income) expense, net, interest expense and income tax provision to segments; such amounts are added to combined segment profit and reconciled to the Company’s consolidated income/(loss) before income taxes. All revenues and net income are earned in the United States.
The following tables provide profit information disaggregated by the Company’s reportable segments for each of the three and six months ended June 30, 2026 and 2025:
Three Months Ended June 30, 2026
EVSDietaryTotal
(in thousands, except for percentages)
Revenues$213,204 $257,604 $470,808 
Significant Segment Expenses
Labor and labor-related1
163,341 149,997 313,338 
Food, chemicals and supplies15,477 78,543 94,020 
Bad debt expense1,090 3,178 4,268 
Depreciation and amortization expense1,250 773 2,023 
Other segment items2
3,728 5,802 9,530 
Segment profit$28,318 $19,311 $47,629 
Segment margin13.3 %7.5 %
Unallocated expenses (income)
Corporate expenses3
$18,529 
Gain on deferred compensation plan investments6,892 
Other (income), net(9,414)
Interest expense619 
Income before income taxes$31,003 
1.Includes direct labor costs, field management costs (including certain costs included in selling, general and administrative expense), employer taxes, workers' compensation and general liability insurance.
2.Includes expenses for technology, employment advertising and onboarding, travel & entertainment and other expenses.
3.Represents selling, general and administrative expense less the amounts allocated to segments for labor and benefits.

Three Months Ended June 30, 2025
EVSDietaryTotal
(in thousands, except for percentages)
Revenues$205,743 $252,748 $458,491 
Significant Segment Expenses
Labor and labor-related1
159,524 145,885 305,409 
Food, chemicals and supplies14,214 77,286 91,500 
Bad debt expense24,909 47,384 72,293 
Depreciation and amortization expense1,238 1,583 2,821 
Other segment items2
4,196 6,081 10,277 
Segment profit (loss)$1,662 $(25,471)$(23,809)
Segment margin0.8 %(10.1)%
Unallocated expenses (income)
Corporate expenses3
$17,747 
Gain on deferred compensation plan investments4,649 
Other (income), net(4,735)
Interest expense418 
Loss before income taxes$(41,888)
1.Includes direct labor costs, field management costs (including certain costs included in selling, general and administrative expense), employer taxes, workers' compensation and general liability insurance.
2.Includes technology, employment advertising and onboarding, travel & entertainment and other expenses.
3.Represents selling, general and administrative expense less the amounts allocated to segments for labor and benefits.
Six Months Ended June 30, 2026
EVSDietaryTotal
(in thousands, except for percentages)
Revenues$421,457 $512,117 $933,574 
Significant Segment Expenses
Labor and labor-related1
323,275 298,077 621,352 
Food, chemicals and supplies30,730 156,086 186,816 
Bad debt expense4,729 3,323 8,052 
Depreciation and amortization expense2,309 1,548 3,857 
Other segment items2
6,872 10,742 17,614 
Segment profit$53,542 $42,341 $95,883 
Segment margin12.7 %8.3 %
Unallocated expenses (income)
Corporate expenses3
$34,515 
Gain on deferred compensation plan investments5,322 
Other (income), net(10,482)
Interest expense984 
Income before income taxes$65,544 
1.Includes direct labor costs, field management costs (including certain costs included in selling, general and administrative expense), employer taxes, workers' compensation and general liability insurance.
2.Includes expenses for technology, employment advertising, travel & entertainment, professional services and various other less significant expense items.
3.Represents selling, general and administrative expense less the amounts allocated to segments for labor and benefits.
Six Months Ended June 30, 2025
EVSDietaryTotal
(in thousands, except for percentages)
Revenues$402,081 $504,072 $906,153 
Significant Segment Expenses
Labor and labor-related1
316,500 295,525 612,025 
Food, chemicals and supplies27,777 153,295 181,072 
Bad debt expense25,273 48,108 73,381 
Depreciation and amortization expense2,220 2,308 4,528 
Other segment items2
7,461 11,213 18,674 
Segment profit (loss)$22,850 $(6,377)$16,473 
Segment margin5.7 %(1.3)%
Unallocated expenses (income)
Gain on deferred compensation plan investments$36,491 
Corporate expenses3
3,182 
Other (income), net(6,019)
Interest expense813 
Loss before income taxes$(17,994)
1.Includes direct labor costs, field management costs (including certain costs included in selling, general and administrative expense), employer taxes, workers' compensation and general liability insurance.
2.Includes expenses for technology, employment advertising, travel & entertainment, professional services and various other less significant expense items.
3.Represents selling, general and administrative expense less the amounts allocated to segments for labor and benefits.
The following table provides capital expenditures disaggregated by the Company’s reportable segments for each of the six months ended June 30, 2026 and 2025.

Six Months Ended June 30,
20262025
(in thousands)
Capital Expenditures
EVS$2,544 $2,593 
Dietary436 471 
Corporate48 38 
Consolidated$3,028 $3,102