Q3 FY2026
Filed Nov 10, 2026Q3 2026 net revenues rose 5% to $461 million, net income nearly doubled to $65 million, Adjusted EBITDA rose 14% to $127 million, and the full-year Adjusted EBITDA growth outlook was raised to about 10%
Revenue grew 5% with North America up 8%, GAAP net income rose from $32,896 thousand to $65,134 thousand, Adjusted EBITDA margin expanded about 220 basis points to 27.5%, operating cash flow rose to $84 million from $66 million, net leverage fell to 2.25x, and the Adjusted EBITDA growth outlook was raised to about 10%. The company attributes part of the margin gain to a discrete benefit from tariff refunds, and International revenue declined 1%.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenues, Q3 2026GAAP | $461M | – | 5% |
| Net revenues, Q3 2026 (thousands)GAAP | $460.9M | – | – |
| Equipment, service parts and other revenue, Q3 2026GAAP | $447.9M | – | – |
| Equipment financing revenue, Q3 2026GAAP | $13.04M | – | – |
| Cost of sales, Q3 2026GAAP | $269.3M | – | – |
| Cost of sales related parties, Q3 2026GAAP | $2.05M | – | – |
| Equipment financing expenses, Q3 2026GAAP | $8.00M | – | – |
| Gross profit, Q3 2026GAAP | $181.6M | – | 12% |
| Gross margin, Q3 2026GAAP | 39.4% | – | approximate 240 basis points increase |
| Selling, general and administrative expenses, Q3 2026GAAP | $81.75M | – | – |
| Total operating expenses, Q3 2026GAAP | $81.80M | – | – |
| Operating income, Q3 2026GAAP | $99.78M | – | – |
| Interest expense, net, Q3 2026GAAP | $16.57M | – | approximately $20 million lower (company figure) |
| Other (income)/expenses, net, Q3 2026GAAP | −$2.71M | – | – |
| Income before taxes, Q3 2026GAAP | $85.92M | – | – |
| Provision for income taxes, Q3 2026GAAP | $20.78M | – | – |
| Net income, Q3 2026GAAP | $65.13M | – | – |
| Net income margin, Q3 2026GAAP | 14.1% | – | – |
| Net income per diluted share, Q3 2026GAAP | $0.32 | – | – |
| Net income per basic share, Q3 2026GAAP | $0.33 | – | – |
| Adjusted net income, Q3 2026non-GAAP | $76.00M | – | approximately 57% |
| Adjusted net income per diluted share, Q3 2026non-GAAP | $0.38 | – | – |
| Adjusted EBITDA, Q3 2026non-GAAP | $126.7M | – | 14% |
| Adjusted EBITDA margin, Q3 2026non-GAAP | 27.5% | – | approximately 220 basis points increase |
| Net cash provided by operating activities, Q3 2026 (company text)GAAP | $84M | – | – |
| Net revenues, nine months ended September 30, 2026GAAP | $1.36B | – | – |
| Equipment, service parts and other revenue, nine months ended September 30, 2026GAAP | $1.33B | – | – |
| Equipment financing revenue, nine months ended September 30, 2026GAAP | $37.77M | – | – |
| Cost of sales, nine months ended September 30, 2026GAAP | $806.1M | – | – |
| Gross profit, nine months ended September 30, 2026GAAP | $528.7M | – | – |
| Selling, general and administrative expenses, nine months ended September 30, 2026GAAP | $239.2M | – | – |
| Operating income, nine months ended September 30, 2026GAAP | $289.2M | – | – |
| Interest expense, net, nine months ended September 30, 2026GAAP | $52.26M | – | – |
| Other (income)/expenses, net, nine months ended September 30, 2026GAAP | −$9.17M | – | – |
| Income before taxes, nine months ended September 30, 2026GAAP | $246.1M | – | – |
| Provision for income taxes, nine months ended September 30, 2026GAAP | $55.42M | – | – |
| Net income, nine months ended September 30, 2026GAAP | $190.7M | – | – |
| Net income margin, nine months ended September 30, 2026GAAP | 14.0% | – | – |
| Net income per diluted share, nine months ended September 30, 2026GAAP | $0.94 | – | – |
| Adjusted net income, nine months ended September 30, 2026non-GAAP | $222.0M | – | – |
| Adjusted net income per diluted share, nine months ended September 30, 2026non-GAAP | $1.09 | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $369.5M | – | – |
| Adjusted EBITDA margin, nine months ended September 30, 2026non-GAAP | 27.1% | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $230.2M | – | – |
| Capital expenditures, nine months ended September 30, 2026GAAP | −$23.78M | – | – |
| Repurchase of common stock, nine months ended September 30, 2026GAAP | −$75M | – | – |
| Payments on long-term borrowings, nine months ended September 30, 2026GAAP | −$160M | – | – |
| Net leverage (Net Debt to Adjusted EBITDA), September 30, 2026non-GAAP | 2.25x | – | – |
| Net debt, September 30, 2026 (vs December 31, 2025)non-GAAP | $1.07B | – | – |
| Total debt, September 30, 2026 (vs December 31, 2025)GAAP | $1.21B | – | – |
| Cash and cash equivalents, September 30, 2026 (vs December 31, 2025)GAAP | $133.7M | – | – |
| Total assets, September 30, 2026 (vs December 31, 2025)GAAP | $2.93B | – | – |
| Total stockholders' equity, September 30, 2026 (vs December 31, 2025)GAAP | $490.8M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| North AmericaCompany states growth was led by Commercial In-Home and On-Premise Laundry, both driven by higher volume. Vended results reflected timing of new store projects, including longer permitting and construction lead times. Segment Adjusted EBITDA was $115,246 thousand (prior year $95,449 thousand) with a 32.4% margin (prior year 28.9%); the company text says margin rose over 300 basis points. | $355,590 thousand (Q3 2026); $356 million per company text | – | 8% |
| InternationalCompany states revenue decreased 1%, mainly due to foreign currency, with foreign currency having an approximate one percent negative impact on International revenue. Latin America showed solid growth, Europe was steady, Asia Pacific reflected project timing, and Middle East & Africa stabilized. Segment Adjusted EBITDA was $26,605 thousand (prior year $25,650 thousand) with a 25.3% margin (prior year 24.0%), which the company attributes to favorable product and end market mix and positive price versus cost. | $105,330 thousand (Q3 2026); $105 million per company text | – | -1% |
| Nine months, North AmericaNine-month segment Adjusted EBITDA was $315,806 thousand (prior $273,027 thousand) with a 30.5% margin (prior 28.7%). Prior-year nine-month revenue of $952,156 thousand is printed in the segment table. | $1,034,667 thousand (nine months ended September 30, 2026) | – | – |
| Nine months, InternationalNine-month segment Adjusted EBITDA was $93,111 thousand (prior $91,344 thousand) with a 28.2% margin (prior 28.3%). Prior-year nine-month revenue of $322,207 thousand is printed in the segment table. | $329,895 thousand (nine months ended September 30, 2026) | – | – |
FY2026 (updated November 10, 2026) outlook
- RevenueNet revenue growth of +6% to 7%, unchanged
- Tax rate~23.0%, unchanged
- NoteAdjusted EBITDA growth ~10%, raised from +8% to 10% (company: high end of the prior range)
- NoteNet Leverage approximately 2.1x by end of 2026, absent other capital allocation opportunities, including the $75 million Q3 share repurchase (previously 2.0x by year end, issued before that repurchase)
- NoteCapital expenditures ~3% of revenue, unchanged
- NoteInterest expense ~$75 million for 2026 (previously ~$80 million)
- NoteDiluted share count ~203 million for fiscal 2026 (previously ~205 million)
- NoteCompany does not provide GAAP reconciliations for Adjusted EBITDA or Net Leverage guidance
Capital returns
- Q3 2026 share repurchase of $75 million of common stock; nine-month repurchase of common stock printed as $(75,000) thousand (prior year $(6,205) thousand)
- Q3 2026 debt repayment of $45 million; year-to-date debt reduction of $160 million (cash flow statement: payments on long-term borrowings $(160,000) thousand, prior year $(135,000) thousand)
- Taxes paid related to net share settlement of stock options, nine months: $(8,795) thousand (prior year $(1,937) thousand)
- Company states the Q3 share repurchase is included in its 2026 Net Leverage outlook of approximately 2.1x
What drove it
- Company attributes net revenue growth of 5% to volume and mix, which accounted for half of the increase, with pricing contributing the balance
- Company states growth in North America was slightly offset by lower International segment revenue
- Company states that foreign currency had an approximate one percent negative impact on International revenue
- Company attributes the gross margin increase of approximately 240 basis points to volume and mix, alongside pricing actions already in place, with a discrete benefit from tariff refunds in the quarter also helping absorb higher inflationary cost increases
- Company attributes the Adjusted EBITDA margin expansion of approximately 220 basis points to volume leverage, operational excellence, and supply chain efficiency, as well as the discrete benefit from tariff refunds in the quarter
- Company attributes the approximately 57% increase in Adjusted net income to growth in operating earnings and approximately $20 million in lower interest expense
- Company states Adjusted EBITDA guidance was raised because of year-to-date performance and visibility into the balance of the year, realization of volume and mix, pricing impact, cost-down initiatives and tariff refunds
Concerns
- Company states significant cost pressures persisted in the quarter, led by steel and freight
- Q3 gross margin and Adjusted EBITDA margin both include a discrete tariff refund benefit that the company identifies as one-time in nature
- Vended revenue was affected by the timing of new store projects, including longer permitting and construction lead times
- International revenue decreased 1%, and the company states regional and product mix will continue to make international results variable from quarter to quarter
- Q3 GAAP net income of $65,134 thousand includes other income of $(2,705) thousand, which includes a foreign exchange gain on intercompany loans of $2,705 thousand; the company excludes this item from Adjusted net income
- Net revenue growth guidance was maintained at +6% to 7% while Adjusted EBITDA guidance was raised, and the company does not provide GAAP reconciliations for its guided non-GAAP measures
- Accounts payable increased to $170,495 thousand at September 30, 2026 from $128,662 thousand at December 31, 2025
What to watch
- Whether the company delivers Adjusted EBITDA growth of about 10% for fiscal 2026 and reaches net leverage of approximately 2.1x by year end
- The size and recurrence of the tariff refund benefit that supported Q3 gross margin and Adjusted EBITDA margin
- Steel and freight cost inflation relative to pricing and cost-down initiatives
- Timing of Vended new store projects in North America
- International top-line performance by region, including the foreign currency effect on International revenue
- Operating cash flow conversion, given the company's Q3 and nine-month operating cash flow figures
- Interest expense trajectory against the guided approximately $75 million for 2026
Balance sheet and cash flow
- Operating cash flow for Q3 2026 was $84 million, up from $66 million, which the company describes as reflecting strong operating cash conversion and continued working capital efficiency
- Nine-month net cash provided by operating activities was $230,202 thousand (prior year $116,790 thousand)
- Capital expenditures for the nine months were $(23,780) thousand (prior year $(29,789) thousand); the company guides capex at about 3% of revenue
- Net debt was $1,071,483 thousand at September 30, 2026, against $1,242,134 thousand at December 31, 2025; total debt was $1,205,133 thousand (term loan $1,205,000 thousand plus finance lease obligations of $133 thousand)
- Asset backed borrowings owed to securitization investors were $204,206 thousand (current) and $461,508 thousand (long-term) at September 30, 2026
- Long-term debt, net was $1,196,820 thousand at September 30, 2026 versus $1,354,636 thousand at December 31, 2025
- Net Leverage was 2.25x at September 30, 2026. The company text describes it as down from approximately 2.4x at June 30, 2026 and approximately 2.8x at the prior year end, while the reconciliation table prints 2.85x at December 31, 2025
Analysis
Alliance Laundry reported third quarter 2026 net revenues of $461 million, up 5% from $438 million, with volume and mix accounting for half of the increase and pricing for the balance, according to the company. North America revenue rose 8% to $356 million, led by Commercial In-Home and On-Premise Laundry, while International revenue declined 1% to $105 million, which the company attributes mainly to foreign currency. Within International, Latin America grew solidly and Europe was steady, with Asia Pacific timing and Middle East and Africa stabilization noted. Gross profit rose 12% to $181,577 thousand, giving a gross margin of 39.4%, which the filing describes as an approximate 240 basis point increase. The company credits volume and mix, pricing, and a discrete tariff refund benefit for absorbing higher inflation.
Below the gross line, operating income rose to $99,775 thousand from $85,492 thousand, and interest expense, net fell to $16,565 thousand from $36,952 thousand. GAAP net income was $65,134 thousand, or $0.32 per diluted share, against $32,896 thousand and $0.19 a year earlier, with a net income margin of 14.1% versus 7.5%. Adjusted net income was $75,999 thousand, or $0.38 per diluted share, against $48,417 thousand and $0.28. Adjusted EBITDA rose 14% to $126,703 thousand, and its margin reached 27.5%, up approximately 220 basis points. North America segment Adjusted EBITDA margin was 32.4%, up from 28.9%, while International margin rose to 25.3% from 24.0% even as its revenue declined.
For the nine months, net revenues were $1,364,562 thousand against $1,274,363 thousand, operating income was $289,229 thousand against $253,825 thousand, and net income was $190,719 thousand against $81,159 thousand. Operating cash flow for the nine months was $230,202 thousand against $116,790 thousand, and the company reports Q3 operating cash flow of $84 million against $66 million. Capital allocation included a $75 million share repurchase in the quarter and $45 million of debt repaid in Q3, with $160 million repaid year to date. Total debt was $1,205,133 thousand and net debt was $1,071,483 thousand at September 30, 2026. Net leverage is printed as 2.25x. The company text describes the prior year-end level as approximately 2.8x, while the reconciliation table prints 2.85x for December 31, 2025; both are reported here as printed.
Guidance was mixed in its details. Net revenue growth of +6% to 7% was maintained, while Adjusted EBITDA growth was raised to about 10%, from a previous range of +8% to 10%. Interest expense guidance was lowered to about $75 million from about $80 million, diluted share count to about 203 million from about 205 million, and the net leverage outlook is about 2.1x, which the company says includes the Q3 repurchase. Tax rate and capex assumptions were unchanged. Attention should go to how much of the Q3 margin benefit reflects the discrete tariff refund the company identifies, the continuing steel and freight pressure, and the lumpy nature of Vended project timing and International regional mix.
Management, verbatim
Demand for our laundry solutions remains durable, and diversity by product, end market, and geography helps to drive long term consistent results.
Michael Schoeb, CEO of Alliance Laundry
Not in the filing
stated, not guessed- Prior-year figures for Q3 gross margin percentage and for North America and International revenue change beyond the percentages printed in text were not printed as separate values
- Prior-year and prior-quarter figures for the nine-month income statement lines were printed, but nine-month year-over-year percentage changes were not printed
- Q3 2026 net revenue prior-quarter (Q2 2026) figures were not printed in the filing
- Q3 2026 operating cash flow of $84 million and prior-year $66 million were given in text only; the three-month cash flow statement was not printed
- Net Leverage at June 30, 2026 (approximately 2.4x) and at prior year end (approximately 2.8x in text versus 2.85x in table) are company text figures; the table prints only the December 31, 2025 value of 2.85x
- Revenue and margin breakdown for Commercial In-Home, On-Premise Laundry, and Vended was not printed in dollar terms
- Revenue breakdown by International region (Europe, Latin America, Asia Pacific, Middle East and Africa) was not printed in dollar terms
- Previous-release outlook was not supplied separately; the prior guidance values printed in the Updated 2026 Guidance table are recorded in the guidance field and not in vs_prior_guidance
- Gross margin and operating expense guidance were not provided
- Balance sheet comparisons are against December 31, 2025, not a prior-year quarter, so the prior_year field carries the December 31, 2025 value and the prior-period label is stated in each metric name
- Consensus estimates, analyst expectations and share price reaction were not included in the filing
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.