v3.26.3
Segment Information
 9 Months Ended
Sep. 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 nine months ended September 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 nine months ended September 30, 2026 and 2025:
Three Months Ended September 30, 2026
EVSDietaryTotal
(in thousands, except for percentages)
Revenues$217,203 $262,401 $479,604 
Significant Segment Expenses
Labor and labor-related1
170,816 154,997 325,813 
Food, chemicals and supplies15,189 79,079 94,268 
Bad debt expense(2,818)(779)(3,597)
Depreciation and amortization expense1,262 786 2,048 
Other segment items2
3,845 5,530 9,375 
Segment profit$28,909 $22,788 $51,697 
Segment margin13.3 %8.7 %
Unallocated expenses (income)
Corporate expenses3
$20,434 
Loss on deferred compensation plan investments(674)
Other (income), net(2,109)
Interest expense318 
Income before income taxes$33,728 
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 September 30, 2025
EVSDietaryTotal
(in thousands, except for percentages)
Revenues$211,788 $252,550 $464,338 
Significant Segment Expenses
Labor and labor-related1
166,198 150,490 316,688 
Food, chemicals and supplies15,803 79,028 94,831 
Bad debt expense1,954 3,677 5,631 
Depreciation and amortization expense1,142 703 1,845 
Other segment items2
3,932 5,733 9,665 
Segment profit$22,759 $12,919 $35,678 
Segment margin10.7 %5.1 %
Unallocated expenses (income)
ERC refunds3
$(34,239)
Corporate expenses4
20,336 
Gain on deferred compensation plan investments3,717 
Other (income), net(11,837)
Interest expense393 
Income before income taxes$57,308 
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.ERC refunds were excluded from segment results for each segment.
4.Represents selling, general and administrative expense less the amounts allocated to segments for labor and benefits.
Nine Months Ended September 30, 2026
EVSDietaryTotal
(in thousands, except for percentages)
Revenues$638,660 $774,518 $1,413,178 
Significant Segment Expenses
Labor and labor-related1
494,091 453,074 947,165 
Food, chemicals and supplies45,919 235,165 281,084 
Bad debt expense1,911 2,544 4,455 
Depreciation and amortization expense3,571 2,334 5,905 
Other segment items2
10,717 16,272 26,989 
Segment profit$82,451 $65,129 $147,580 
Segment margin12.9 %8.4 %
Unallocated expenses (income)
Corporate expenses3
$54,949 
Gain on deferred compensation plan investments4,648 
Other (income), net(12,591)
Interest expense1,302 
Income before income taxes$99,272 
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.
Nine Months Ended September 30, 2025
EVSDietaryTotal
(in thousands, except for percentages)
Revenues$613,869 $756,622 $1,370,491 
Significant Segment Expenses
Labor and labor-related1
482,698 446,015 928,713 
Food, chemicals and supplies43,580 232,323 275,903 
Bad debt expense27,227 51,785 79,012 
Depreciation and amortization expense3,362 3,011 6,373 
Other segment items2
11,393 16,946 28,339 
Segment profit$45,609 $6,542 $52,151 
Segment margin7.4 %0.9 %
Unallocated expenses (income)
ERC refunds3
$(34,239)
Gain on deferred compensation plan investments6,899 
Corporate expenses3
56,827 
Other (income), net(17,856)
Interest expense1,206 
Income before income taxes$39,314 
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.ERC refunds were excluded from segment results for each segment.
4.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 nine months ended September 30, 2026 and 2025.

Nine Months Ended September 30,
20262025
(in thousands)
Capital Expenditures
EVS$4,282 $3,678 
Dietary749 643 
Corporate66 117 
Consolidated$5,097 $4,438