Q3 FY2026
Filed Nov 10, 2026Q3 2026 revenue fell 2.8% to $213.1 million and GAAP net loss was $(13.3) million; Adjusted EBITDA fell 22.0% and full-year 2026 guidance was updated
Third-quarter revenue declined 2.8% year-over-year, with Total Self-Storage down 5.0% and R3 down 10.6%. GAAP net loss was $(13.3) million against net income of $15.2 million a year earlier, after an $18.3 million impairment. Adjusted EBITDA fell 22.0% and margin contracted about 390 basis points. The company states it is updating full-year 2026 guidance and taking actions to align its operating structure with current demand. Free cash flow and deleveraging were partial offsets.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, Q3 2026 (three months)GAAP | $213.1M | – | (2.8)% |
| Product revenues, Q3 2026GAAP | $178.7M | – | – |
| Service revenues, Q3 2026GAAP | $34.4M | – | – |
| Product cost of revenues, Q3 2026GAAP | $116.8M | – | – |
| Service cost of revenues, Q3 2026GAAP | $25.8M | – | – |
| Cost of revenues, Q3 2026GAAP | $142.6M | – | – |
| Gross profit, Q3 2026GAAP | $70.5M | – | – |
| Selling and marketing expense, Q3 2026GAAP | $13.8M | – | – |
| General and administrative expense, Q3 2026GAAP | $43.9M | – | – |
| Impairment of goodwill and intangible assets, Q3 2026GAAP | $18.3M | – | – |
| Operating expenses, Q3 2026GAAP | $76M | – | – |
| (Loss) income from operations, Q3 2026GAAP | −$5.5M | – | – |
| Interest expense, net, Q3 2026GAAP | −$8M | – | – |
| Net (loss) income, Q3 2026GAAP | −$13.3M | – | – |
| Diluted EPS, Q3 2026GAAP | $(0.10) per diluted share | – | – |
| EBITDA, Q3 2026non-GAAP | $13.1M | – | – |
| Adjusted Net Income, Q3 2026non-GAAP | $10.8M | – | – |
| Adjusted Diluted EPS, Q3 2026non-GAAP | $0.08 per diluted share | – | – |
| Adjusted EBITDA, Q3 2026non-GAAP | $34M | – | (22.0)% |
| Adjusted EBITDA margin, Q3 2026non-GAAP | 16.0% | – | down approximately 390 basis points |
| Nokē Smart Entry System connected devices, quarter endother | 524,000 | – | up 19.4% |
| Total revenues, nine months 2026GAAP | $669.3M | – | 1.7% |
| Product revenues, nine months 2026GAAP | $565.4M | – | – |
| Service revenues, nine months 2026GAAP | $103.9M | – | – |
| Cost of revenues, nine months 2026GAAP | $443.3M | – | – |
| Gross profit, nine months 2026GAAP | $226M | – | – |
| Selling and marketing expense, nine months 2026GAAP | $49.2M | – | – |
| General and administrative expense, nine months 2026GAAP | $130.3M | – | – |
| Operating expenses, nine months 2026GAAP | $197.8M | – | – |
| Income from operations, nine months 2026GAAP | $28.2M | – | – |
| Net (loss) income, nine months 2026GAAP | −$2.4M | – | – |
| Diluted EPS, nine months 2026GAAP | $(0.02) per diluted share | – | – |
| Adjusted Net Income, nine months 2026non-GAAP | $45.1M | – | – |
| Adjusted Diluted EPS, nine months 2026non-GAAP | $0.33 per diluted share | – | – |
| EBITDA, nine months 2026non-GAAP | $75.4M | – | (40.0)% |
| Adjusted EBITDA, nine months 2026non-GAAP | $107.2M | – | (18.2)% |
| Adjusted EBITDA margin, nine months 2026non-GAAP | 16.0% | – | – |
| Net cash provided by operating activities, nine months 2026GAAP | $94.6M | – | – |
| Purchases of property, plant and equipment, nine months 2026GAAP | −$8.1M | – | – |
| Free Cash Flow, nine months 2026non-GAAP | $86.5M | – | – |
| Free Cash Flow Conversion of Adjusted Net Income, nine months 2026non-GAAP | 192% | – | – |
| Free Cash Flow Conversion of Adjusted Net Income, trailing twelve months ended October 3, 2026non-GAAP | 203% | – | – |
| Net Leverage Ratio, October 3, 2026non-GAAP | 2.9x | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Self-storage, new construction (revenue by sales channel), Q3 2026The filing states that the acquisition of Kiwi II Construction contributed $10.7 million to this sales channel. The company gives no further driver for the change. | $95.7 million (44.9% of total sales) | – | (1.6)% |
| Self-storage, R3 (revenue by sales channel), Q3 2026The filing reports the change but does not explain its cause. | $51.2 million (24.0% of total sales) | – | (10.6)% |
| Total self-storage (revenue by sales channel), Q3 2026The filing states Total Self-Storage revenues decreased 5.0%, with New Construction down 1.6% and R3 down 10.6%. The company gives no further cause. | $146.9 million (68.9% of total sales) | – | (5.0)% |
| Commercial and other (revenue by sales channel), Q3 2026The filing states Commercial and Other revenues increased 2.3%. The company gives no further cause. | $66.2 million (31.1% of total sales) | – | 2.3% |
| Self-storage, new construction (revenue by sales channel), nine months 2026The filing does not explain the nine-month change. The Kiwi II Construction contribution of $10.7 million is quoted only for the quarter. | $305.2 million (45.6% of total sales) | – | 11.0% |
| Self-storage, R3 (revenue by sales channel), nine months 2026The filing reports the change but does not explain its cause. | $167.6 million (25.0% of total sales) | – | (1.4)% |
| Total self-storage (revenue by sales channel), nine months 2026The filing reports the change but gives no cause. | $472.8 million (70.6% of total sales) | – | 6.3% |
| Commercial and other (revenue by sales channel), nine months 2026The filing reports the change but gives no cause. | $196.5 million (29.4% of total sales) | – | (7.8)% |
FY2026 (updated, per the filing) outlook
- Revenue$855 million to $865 million total revenue; (2.7)% year-over-year change at the midpoint
- NoteInorganic revenue (included above): $55 million to $60 million
- NoteAdjusted EBITDA (non-GAAP): $127 million to $133 million; (22.7)% year-over-year change at the midpoint
- NoteThe company has not provided the most directly comparable GAAP measure or a quantitative reconciliation for Adjusted EBITDA and Inorganic Revenue guidance, citing the 'unreasonable efforts' exception in Item 10(e)(1)(i)(B) of Regulation S-K
Capital returns
- Repurchased approximately 5.0 million shares of common stock for a total of $25.3 million (including commissions and excise taxes) during Q3 2026
- Year-to-date, repurchased approximately 8.2 million shares of common stock for a total of $42.9 million (including commissions and excise taxes)
- Cash flow statement, nine months 2026: repurchase of common stock $(42.5) million, against $(15.9) million in the prior-year nine months
- Voluntary prepayment of $30.0 million towards the First Lien Term Loan during the quarter
- Treasury stock at cost rose to $(145.6) million (18,238,301 shares) at October 3, 2026, from $(100.4) million (9,583,103 shares) at January 3, 2026
What drove it
- The filing states that the acquisition of Kiwi II Construction contributed $10.7 million to the New Construction sales channel in Q3 2026
- The filing states that the $18.3 million impairment of goodwill and intangible assets covers write-downs of goodwill at the BETCO and Kiwi II reporting units and of certain indefinite-lived tradenames
- The filing states that the company is taking actions to align its operating structure with current demand, improve efficiency and strengthen the business. The Q3 restructuring charge was $1.3 million, against $1.1 million a year earlier, and the nine-month figure was $5.5 million, against $2.3 million
- Amortization rose to $15.1 million in Q3 2026 from $8.3 million a year earlier, and to $39.1 million for nine months from $24.8 million. The filing reports these figures without stating a cause
Concerns
- GAAP net loss of $(13.3) million for Q3 2026, against net income of $15.2 million a year earlier
- Adjusted EBITDA fell 22.0% to $34.0 million, and margin fell to 16.0% from 19.9%
- Gross profit fell to $70.5 million from $85.7 million, while product cost of revenues rose to $116.8 million from $113.2 million and service cost of revenues rose to $25.8 million from $20.4 million
- R3 revenues fell 10.6% year-over-year in Q3 2026, and nine-month R3 revenue fell 1.4%
- Commercial and other revenue for nine months fell 7.8%, which partly offset the rise in new construction revenue
- Full-year 2026 guidance is presented as updated, with Adjusted EBITDA guided to $127 million to $133 million and a (22.7)% year-over-year change at the midpoint
- Cash fell to $99.9 million from $194.4 million at January 3, 2026, and Net Debt rose to $418.3 million from $356.6 million
- Stockholders' equity declined to $536.7 million from $572.5 million, largely with treasury stock purchases and the net loss
What to watch
- Whether R3 revenue declines continue, given the 10.6% Q3 decline and the 1.4% nine-month decline
- Delivery of the full-year guide: Adjusted EBITDA of $127 million to $133 million and total revenue of $855 million to $865 million, with inorganic revenue of $55 million to $60 million
- Realization of the restructuring and efficiency actions the CEO describes, and whether restructuring charges stay in the range of recent quarters
- Integration of Kiwi II Construction, referenced in the forward-looking statements as a risk
- Net Leverage of 2.9x and the pace of debt reduction, following the $30.0 million voluntary prepayment of the First Lien Term Loan
- Nokē connected devices, which reached 524,000 at quarter end, up 19.4% year-over-year
- Whether the 2026 Adjusted EBITDA reconciliation becomes available, since the company has excluded the GAAP reconciliation for guidance
Balance sheet and cash flow
- Cash and cash equivalents: $99.9 million at October 3, 2026, against $194.4 million at January 3, 2026
- Long-term debt, net: $508.2 million at October 3, 2026, against $538.8 million at January 3, 2026
- Total assets: $1,241.9 million at October 3, 2026, against $1,305.0 million at January 3, 2026
- Total stockholders' equity: $536.7 million at October 3, 2026, against $572.5 million at January 3, 2026
- Net Debt (non-GAAP): $418.3 million at October 3, 2026, against $356.6 million at January 3, 2026
- Non-GAAP Net Leverage Ratio: 2.9x at October 3, 2026, against 2.1x at January 3, 2026, per the company's net leverage table
- Net cash used in investing activities, nine months 2026: $(108.9) million, including cash paid for acquisition, net of cash acquired, of $(98.9) million
- Principal payments on long-term debt, nine months 2026: $(32.7) million
- Goodwill rose to $415.8 million from $383.9 million at January 3, 2026. Intangible assets, net were $336.1 million, against $341.1 million
Analysis
Janus reported Q3 2026 revenue of $213.1 million, down 2.8% from $219.3 million a year earlier. Within that, Total Self-Storage fell 5.0% to $146.9 million. New construction declined 1.6% to $95.7 million, and R3 fell 10.6% to $51.2 million. Commercial and other rose 2.3% to $66.2 million. The company states that the Kiwi II Construction acquisition contributed $10.7 million to the New Construction channel, so the quarter's underlying new construction trend cannot be separated from the acquisition using the figures printed. Nine-month revenue of $669.3 million rose 1.7%, driven by new construction up 11.0%, while commercial and other fell 7.8%.
Profitability weakened more than revenue. Gross profit fell to $70.5 million from $85.7 million. Product cost of revenues rose to $116.8 million from $113.2 million on lower product revenue, and service cost of revenues rose to $25.8 million from $20.4 million on higher service revenue. Operating expenses rose to $76.0 million from $56.3 million, including an $18.3 million impairment of goodwill and intangible assets. The impairment relates to the BETCO and Kiwi II reporting units and to certain tradenames, according to the filing. The company reported a GAAP loss from operations of $(5.5) million against income of $29.4 million a year earlier, and a GAAP net loss of $(13.3) million against net income of $15.2 million. Adjusted EBITDA fell 22.0% to $34.0 million, and the adjusted margin of 16.0% was down approximately 390 basis points. Adjusted diluted EPS was $0.08 against $0.16. The filing does not print a gross margin figure, so this read does not derive one.
Cash generation and capital allocation were the stronger part of the release. Nine-month operating cash flow was $94.6 million and free cash flow was $86.5 million, with trailing twelve-month free cash flow conversion of adjusted net income at 203%. Cash declined to $99.9 million from $194.4 million at January 3, 2026, largely because of the $98.9 million acquisition payment, the $42.5 million of share repurchases and debt repayments. The company made a $30.0 million voluntary prepayment on its First Lien Term Loan in the quarter and reports Net Leverage of 2.9x, against 2.1x at January 3, 2026. Year-to-date repurchases total $42.9 million for about 8.2 million shares.
The full-year 2026 guidance was updated to total revenue of $855 million to $865 million, a (2.7)% change at the midpoint, and Adjusted EBITDA of $127 million to $133 million, a (22.7)% change at the midpoint. The filing says the guidance is updated but does not print the prior ranges, so this read does not characterize the direction of the change. The company has not provided a GAAP reconciliation for the 2026 Adjusted EBITDA or Inorganic Revenue guidance, citing the 'unreasonable efforts' exception. Items that deserve attention are the R3 trend, the impairment and its link to the acquisition, the rise in amortization to $15.1 million from $8.3 million in the quarter, and the decline in cash and net debt.
Management, verbatim
Market conditions remained dynamic during the third quarter, with activity levels softer than anticipated. While we continue to believe the long-term fundamentals supporting our business remain intact, we are taking actions to align our operating structure with current demand, improve efficiency, and strengthen the business.
Ramey Jackson, Chief Executive Officer
Not in the filing
stated, not guessed- Gross margin percentage for Q3 2026 and the prior year is not printed and was not derived
- Prior guidance ranges were not provided, so the change in the 2026 outlook cannot be confirmed as raised, lowered or held
- Prior-year and prior-quarter figures for product and service revenue changes are not printed
- Year-over-year percentage change for Q3 product revenue, service revenue, cost of revenues, gross profit, operating expenses and operating income are not printed
- Q3 2026 Adjusted EBITDA margin change is printed as 'down approximately 390 basis points'. No percentage change for the nine-month EBITDA margin is printed
- Drivers for the R3 decline, the New Construction change excluding the acquisition, and the Commercial and Other increase are not given in the filing
- The prior-year Net Leverage Ratio is printed only as of January 3, 2026, so it is not placed in the prior-year field
- Share price reaction, consensus estimates and analyst expectations are not in the documents
- Inorganic revenue for the nine months and the amount of Kiwi II revenue in the nine-month period are not printed
- GAAP reconciliation of the 2026 Adjusted EBITDA and Inorganic Revenue guidance was excluded by the company
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.