Onterris, Inc. (ONT): Results of Operations and Financial Condition
Onterris, Inc. (ONT) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Onterris Reports Second Quarter Results, Updates Full-Year 2026 Guidance, and Announces Board-led Strategic Review Process Updates Date and Time of Conference Call to Today, Wednesday, August 5, at 5:30 p.m. Eastern Time Second Quarter 2026 Highlights (comparisons to
How this was made
The 30-second read
Why it matters
Traders should focus on the magnitude of the revenue cut and the updated Adjusted EBITDA range, then reconcile how the company still expects strong operating cash conversion and a ~2.5x year-end leverage ratio.
Market read
The filing provides fresh, decision-relevant forward guidance (revenue and Adjusted EBITDA) tied to a specific operating driver, historically low emergency response activity.
What to watch
The guidance explicitly excludes benefits from future acquisitions and unoccurred emergencies, so upside may be capped unless activity rebounds or deals materialize.
Onterris Reports Second Quarter Results, Updates Full-Year 2026 Guidance, and Announces Board-led Strategic Review Process
Revenue, operating income, net income and adjusted EBITDA declined from the prior-year quarter as environmental emergency response activity remained historically low, and the Company reduced full-year revenue and adjusted EBITDA guidance. Adjusted EBITDA margin improved, liquidity remained available, and the Company expects underlying business growth, margin expansion and largely unchanged cash-flow expectations.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $186.7 million | – | a decrease of $47.9 million |
| Income from operationsGAAP | $6.5 million | – | – |
| Net incomeGAAP | $1.4 million | – | – |
| EPSGAAP | $0.04 EPS | – | $0.38 comparative period decline in EPS |
| Adjusted Net Incomenon-GAAP | $19.6 million | – | – |
| Diluted Adjusted Net Income per sharenon-GAAP | $0.51 | – | – |
| Consolidated Adjusted EBITDAnon-GAAP | $31.9 million | – | – |
| Consolidated Adjusted EBITDA as a percentage of revenuenon-GAAP | 17.1% | – | – |
| Net cash used in operating activities for the six months ended June 30, 2026GAAP | $5.5 million | – | $32.9 million decrease |
| Leverage ratio under the 2025 Credit Facilityother | 3.2x | – | – |
| Total available liquidityother | $160.8 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Consulting and TreatmentPrimarily due to historically low environmental emergency response and related recovery service revenues in the current-year quarter compared to an abnormally high prior-year quarter driven by a single environmental event. | lower Consulting and Treatment segment revenue of $46.2 million | – | lower Consulting and Treatment segment revenue of $46.2 million |
| Measurement and AnalysisDespite this decrease there is strong client demand and acceleration into the second half of 2026. | lower by $1.7 million | – | lower by $1.7 million |
Full-Year 2026 and Third Quarter 2026 outlook
- RevenueUpdated 2026 revenue guidance of $740.0 million to $790.0 million; Third quarter 2026 revenue is expected to be $190.0 million to $210.0 million
- NoteUpdated 2026 Consolidated Adjusted EBITDA guidance of $117.0 million to $120.0 million.
- Note2026 Consolidated Adjusted EBITDA as a percentage of revenue of 15.5% at the midpoints.
- NoteThird quarter 2026 Consolidated Adjusted EBITDA as a percentage of revenue expected to be 17.0% to 18.0% at the midpoint of the revenue range.
- NoteOnterris expects to convert 60.0% of full-year Consolidated Adjusted EBITDA into operating cash flow.
- NoteOnterris expects to generate $70.0 million to $80.0 million in operating cash flow in the second half of 2026.
- NoteOnterris expects year-end 2026 leverage ratio of approximately 2.5x.
Capital returns
- Repurchased approximately 1.6 million shares of common stock for $30.0 million through the first half of the year.
- $30.0 million of share repurchases in the first half of 2026.
- $10.8 million of contingent consideration payments in the first half of 2026.
What drove it
- Environmental emergency response revenue declined by $37.7 million.
- Lower revenue reflected historically low environmental emergency response and related recovery service revenues compared with an abnormally high prior-year quarter driven by a single environmental event.
- The decrease in income from operations was partially offset by improved project mix and continued cost discipline.
- Adjusted EBITDA margin improved due to successful ongoing cost optimization.
- The full-year revenue reduction was driven by lower pass-through revenue of $35.0 million to $55.0 million, lower emergency response revenue of $35.0 million to $45.0 million, and other lower revenue of $15.0 million to $25.0 million.
Concerns
- Environmental emergency response activity and related services remain significantly below historical levels.
- Full-year 2026 revenue guidance was reduced from $840.0 million to $900.0 million to $740.0 million to $790.0 million.
- Full-year 2026 Consolidated Adjusted EBITDA guidance was reduced from $125.0 million to $130.0 million to $117.0 million to $120.0 million.
- Net cash used in operating activities for the six months ended June 30, 2026, was $5.5 million.
- The Board has not set a timetable for its strategic review, and there can be no assurance that the review will result in any transaction or other outcome.
What to watch
- Acceleration in Measurement and Analysis segment client demand into the second half of 2026.
- Environmental emergency response and related recovery service revenue, which is excluded from the outlook for future environmental emergencies which have not yet occurred.
- Third-quarter revenue expected to be $190.0 million to $210.0 million and Consolidated Adjusted EBITDA as a percentage of revenue expected to be 17.0% to 18.0% at the midpoint of the revenue range.
- Delivery of $70.0 million to $80.0 million in operating cash flow in the second half of 2026.
- The Board-led review of the Company’s business, portfolio, capital allocation, long-range strategic plan, and strategic alternatives.
Balance sheet and cash flow
- Net cash used in operating activities for the six months ended June 30, 2026, was $5.5 million, compared to net cash provided by operating activities of $27.4 million in the prior-year period.
- The payment of $27.7 million in first quarter 2026 for accrued annual 2025 bonuses due to financial outperformance, compared to $11.7 million paid for bonuses in the prior year.
- Total available liquidity was $160.8 million, including $12.7 million of cash and $148.1 million of availability on its revolving line of credit.
- As of June 30, 2026, Onterris reported a leverage ratio under the 2025 Credit Facility of 3.2x.
Analysis
Second-quarter revenue was $186.7 million, compared to $234.5 million in the prior-year quarter, with the Company attributing the decline principally to historically low environmental emergency response and related recovery service activity. Consulting and Treatment segment revenue was lower by $46.2 million, while Measurement and Analysis revenue was lower by $1.7 million. Management nevertheless cited strong client demand in Measurement and Analysis and acceleration into the second half of 2026.
Profitability declined in dollars but improved as a percentage of revenue on the reported adjusted EBITDA measure. Income from operations was $6.5 million compared with $14.9 million, and net income was $1.4 million, or $0.04 EPS, compared with $18.4 million, or $0.42 EPS. Consolidated Adjusted EBITDA was $31.9 million versus $39.6 million, while the associated margin increased to 17.1% from 16.9%, which the Company attributed to improved project mix, cost discipline and ongoing cost optimization.
The Company materially reduced its full-year 2026 outlook. Revenue guidance is now $740.0 million to $790.0 million, from $840.0 million to $900.0 million, and Consolidated Adjusted EBITDA guidance is now $117.0 million to $120.0 million, from $125.0 million to $130.0 million. The revised revenue outlook excludes future acquisitions and environmental emergencies which have not yet occurred. The Company expects 2026 Consolidated Adjusted EBITDA margin of 15.5% at the midpoints and characterized this as approximately 150 basis points of expansion compared to 2025.
Cash flow was seasonally pressured in the first half. Net cash used in operating activities for the six months ended June 30, 2026 was $5.5 million, compared with net cash provided by operating activities of $27.4 million in the prior-year period. The Company cited lower earnings before non-cash items and higher seasonal working-capital usage, including a $27.7 million first-quarter payment for accrued annual 2025 bonuses. It expects to convert 60.0% of full-year Consolidated Adjusted EBITDA into operating cash flow and generate $70.0 million to $80.0 million of operating cash flow in the second half.
Capital allocation included approximately 1.6 million shares repurchased for $30.0 million through the first half. At June 30, total available liquidity was $160.8 million, including $12.7 million of cash and $148.1 million of revolving-credit availability, while the leverage ratio under the 2025 Credit Facility was 3.2x. The Company also announced a Board-led strategic review and adopted a limited-duration rights plan effective immediately that expires on August 4, 2027.
Management, verbatim
While environmental emergency response activity and related services remain significantly below historical levels, as reflected in our updated 2026 revenue outlook, the underlying business continues to grow. We expect Consolidated Adjusted EBITDA growth in 2026 and approximately 150 basis points of margin expansion compared to 2025. Underlying growth in the business and improved profitability explain why full year cash flow expectations are largely unchanged from the start of the year. These expectations are grounded in our relatively predictable testing business and known consulting and treatment projects.
Vijay Manthripragada, President and Chief Executive Officer
We remain committed to achieving our long-term goals and are continuing to execute against the priorities within our control, including serving our clients, maintaining cost discipline and converting a greater share of our revenue into earnings and cash flow. That work is strengthening Onterris and supporting our objective of enhancing value for stockholders.
Vijay Manthripragada, President and Chief Executive Officer
Not in the filing
stated, not guessed- Gross margin for the second quarter of 2026 and prior-year quarter.
- Operating expenses for the second quarter of 2026 and prior-year quarter.
- Income tax expense and tax rate for the second quarter of 2026 and prior-year quarter.
- Free cash flow.
- Total debt and net debt.
- Actual Consulting and Treatment segment revenue for the second quarter of 2026 and prior-year quarter.
- Actual Measurement and Analysis segment revenue for the second quarter of 2026 and prior-year quarter.
- Prior-quarter comparisons for revenue, profitability, segment results and cash flow.
- Dividend information.
- Previous-release outlook for comparison with actual results. მიუხედავად the release states prior guidance ranges, no previous outlook section was provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC 8-K with Exhibit 99.1 covering Onterris Q2 2026 results, an updated full-year 2026 outlook, and a third-quarter 2026 outlook.
Ticker impact
Onterris reported Q2 results and updated 2026 guidance, cutting revenue and Adjusted EBITDA outlook due to historically low emergency response activity.
Near-term volatility likely as investors reprice the lower revenue outlook, partially offset by cost-optimization and unchanged cash-flow expectations.
The filing discloses concrete Q2 underperformance versus prior year and provides specific updated full-year revenue and Adjusted EBITDA ranges, which directly drive valuation and forward estimates.
Market effects
Signals demand normalization risk in environmental emergency response services, while highlighting cost discipline as a partial offset.
Limited, company-specific update tied to Onterris operations rather than a broad regional macro shift.
Low, primarily affects Onterris forward estimates and sentiment within its niche environmental services market.
Counterpoint
Despite lower revenue, the company emphasizes margin expansion and largely unchanged operating cash-flow expectations, suggesting earnings quality may be improving even with weaker activity.
Key entities
- issuerOnterris, Inc.
NYSE-listed environmental solutions company reporting Q2 results and updating 2026 guidance.
- executiveVijay Manthripragada
President and CEO commenting on underlying growth, cost discipline, and cash-flow expectations.
