v3.26.3
Segment Information
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segment Information

19. SEGMENT INFORMATION

Historically, the Company had six operating units that aggregate into three reportable segments: Assessment, Permitting and Response, Measurement and Analysis, and Remediation and Reuse. Effective in the first quarter of 2026, the Company realigned its reportable segments to reflect updates made to its organizational structure and operating model. As a result of these changes, the Company now manages two reportable segments, namely Consulting and Treatment and Measurement and Analysis. Specifically, the Assessment, Permitting and Response segment and Remediation and Reuse segment were aggregated into the new Consulting and Treatment segment based on their similar characteristics, including similar long-term financial performance, the nature of services provided, internal processes for delivering those services, and types of customers. The Company's Measurement and Analysis and corporate segments were not affected by the realignment.

These segments are monitored separately by management for performance against budget and prior year and are consistent with internal financial reporting. The Company’s operating segments are organized based upon primary services provided, the nature of the production process, types of customers, methods used to distribute the products, and the nature of the regulatory environment. Refer to Note 1 for description of each reportable segment.

The Company's Chief Executive Officer, who serves as the Chief Operating Decision Maker (CODM), reviews Segment Adjusted EBITDA in the annual budget and forecasting process. The CODM considers budget-to-actual variances on a quarterly basis when making decisions about the allocation of Company resources depending on the needs of each segment and the availability of resources. Segment Adjusted EBITDA is the calculated Company’s Earnings before Interest, Tax, Depreciation and Amortization (EBITDA), adjusted to exclude certain transactions such as stock-based compensation, acquisition costs, and fair value changes in financial instruments, amongst others. The CODM does not review segment assets or expenses as a measure of segment performance. Effective in the first quarter of 2026, the Company updated its reportable segments to reflect changes in its organizational structure and operating model described above. Accordingly, the Company’s updated segments represent the components whose operating results are regularly reviewed by the CODM to make decisions about the allocation of resources and to assess performance.

Corporate and Other includes costs associated with general corporate overhead (including executive, legal, finance, safety, human resources, marketing and IT related costs) that are not directly related to supporting operations. Overhead costs that are directly related to supporting operations (such as insurance, software, licenses, shared services and payroll processing costs) are allocated to the operating segments on a basis that reasonably approximates an estimate of the use of these services, and are included in Other Segment Items in the tables below.

The following table presents Segment Revenues, Other Segment Items and Segment Adjusted EBITDA, with prior period information recast to reflect the above change in segment reporting:

 

 

Three Months Ended September 30,

 

 

 

2026

 

 

2025

 

(in thousands)

 

Segment Revenues

 

 

Other Segment Items(1)

 

 

Segment Adjusted EBITDA

 

 

Segment Revenues

 

 

Other Segment Items(1)

 

 

Segment Adjusted EBITDA

 

Consulting and Treatment

 

$

141,984

 

 

$

111,147

 

 

$

30,837

 

 

$

161,930

 

 

$

132,082

 

 

$

29,848

 

Measurement and Analysis

 

 

61,060

 

 

 

45,099

 

 

 

15,961

 

 

 

62,958

 

 

 

45,675

 

 

 

17,283

 

Total Reportable Segments

 

$

203,044

 

 

 

 

 

$

46,798

 

 

$

224,888

 

 

 

 

 

$

47,131

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

 

 

2026

 

 

2025

 

(in thousands)

 

Segment Revenues

 

 

Other Segment Items(1)

 

 

Segment Adjusted EBITDA

 

 

Segment Revenues

 

 

Other Segment Items(1)

 

 

Segment Adjusted EBITDA

 

Consulting and Treatment

 

$

382,168

 

 

$

303,313

 

 

$

78,855

 

 

$

452,482

 

 

$

368,550

 

 

$

83,932

 

Measurement and Analysis

 

 

176,055

 

 

 

134,180

 

 

 

41,875

 

 

 

184,783

 

 

 

135,429

 

 

 

49,354

 

Total Reportable Segments

 

$

558,223

 

 

 

 

 

$

120,730

 

 

$

637,265

 

 

 

 

 

$

133,286

 

 

__________________________

(1) Other Segment Items for each reportable segment represents the difference between Segment Revenues and Segment Adjusted EBITDA and primarily includes cost of revenues, selling, general and administrative expense, and other income (expense), net. The CODM uses consolidated expense information as presented in the Consolidated Statement of Operations and Comprehensive Income (Loss) to manage operations and is not regularly provided disaggregated Other Segment Items at the individual segment level.

Presented below is a reconciliation of the Company’s segment measure to income before expense from income taxes:

 

 

For the Three Months Ended September 30,

 

 

For the Nine Months Ended September 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Total Reportable Segments

 

$

46,798

 

 

$

47,131

 

 

$

120,730

 

 

$

133,286

 

Corporate and Other

 

 

(10,895

)

 

 

(13,470

)

 

 

(35,124

)

 

 

(41,010

)

Interest expense, net

 

 

(5,564

)

 

 

(5,039

)

 

 

(16,501

)

 

 

(14,872

)

Depreciation and amortization

 

 

(12,599

)

 

 

(12,958

)

 

 

(37,932

)

 

 

(39,015

)

Stock-based compensation

 

 

(9,733

)

 

 

(9,220

)

 

 

(28,424

)

 

 

(33,777

)

Acquisition costs(1)

 

 

(151

)

 

 

(754

)

 

 

(369

)

 

 

(1,790

)

Fair value changes in financial instruments(2)

 

 

1,031

 

 

 

10,354

 

 

 

2,273

 

 

 

18,394

 

Fair value changes in business acquisition contingencies

 

 

—

 

 

 

(13

)

 

 

697

 

 

 

(844

)

Rebranding expenses

 

 

(587

)

 

 

—

 

 

 

(3,110

)

 

 

—

 

Proceeds from insurance settlement related to business combination(3)

 

 

3,700

 

 

 

—

 

 

 

3,700

 

 

 

—

 

Other losses or expenses(4)

 

 

(741

)

 

 

(372

)

 

 

(3,356

)

 

 

(1,857

)

Income before expense from income taxes

 

$

11,259

 

 

$

15,659

 

 

$

2,584

 

 

$

18,515

 

__________________________

(1) Includes financial and tax diligence, consulting, legal, valuation, accounting, travel and acquisition-related incentives related to the Company's acquisition and integration activity.

(2) The three and nine months ended September 30, 2026 consist of the change in fair value of the interest rate swap instruments. The three and nine months ended September 30, 2025 consist primarily of the change in fair value of the interest rate swap instruments and the embedded derivative attached to the Series A-2 preferred stock.

(3) Proceeds from a representations and warranties insurance settlement related to a previously completed acquisition.

(4) The three months ended September 30, 2026 consist primarily of third-party costs associated with a global IT migration and expenses associated with the Board-led strategic review. The nine months ended September 30, 2026 consist primarily of severance costs related to organizational restructuring of business lines within the Company's former Assessment, Permitting and Response and Remediation and Reuse segments, third-party costs associated with a global IT migration, and expenses associated with the Board-led strategic review. The three months ended September 30, 2025 consist primarily of severance costs. The nine months ended September 30, 2025 consist primarily of the aforementioned severance costs, non-recurring costs incurred to restructure the Company's renewable energy business, third party expenses associated with the independent review and analysis of assertions in a short seller report regarding the Company, and costs to centralize certain back-office functions.

The following table presents revenues by geographic location:

 

 

For the Three Months Ended September 30,

 

 

For the Nine Months Ended September 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

United States

 

$

159,543

 

 

$

183,578

 

 

$

445,320

 

 

$

528,525

 

Canada

 

 

33,584

 

 

 

33,509

 

 

 

86,499

 

 

 

85,857

 

Other international

 

 

9,917

 

 

 

7,801

 

 

 

26,404

 

 

 

22,883

 

Total revenue

 

$

203,044

 

 

$

224,888

 

 

$

558,223

 

 

$

637,265

 

The following table presents long-lived assets by geographic location:

 

 

September 30,

 

 

December 31,

 

 

 

2026

 

 

2025

 

United States

 

$

60,889

 

 

$

58,590

 

Canada

 

 

3,609

 

 

 

4,311

 

Other international

 

 

991

 

 

 

952

 

Total property and equipment—net

 

$

65,489

 

 

$

63,853