The quarter was mixed against consensus, not a clean top-line beat. Revenue reached $476.8 million, below the published consensus of roughly $483.4 million, while diluted GAAP EPS was $0.34 versus approximately $0.35 expected. The offset was adjusted EPS of $0.41, ahead of that benchmark, making the earnings-quality read better than the headline revenue miss suggests. (Financial Highlights; Reconciliation Schedules)
| Metric | Q2 2026 | Q2 2025 | External expectation |
|---|---|---|---|
| Net revenue | $476.8M | $447.2M | ~$483.4M |
| Diluted GAAP EPS | $0.34 | $0.18 | ~$0.35 |
| Adjusted diluted EPS | $0.41 | $0.31 | ~$0.35 |
| Adjusted EBITDA | $133.8M | $119.4M | — |
| Adjusted EBITDA margin | 28.1% | 26.7% | — |
Profitability was the real upside. Adjusted EBITDA grew 12% and margin expanded 140 basis points year over year, helped by pricing, volume leverage and cost reductions. North America carried the quarter, with revenue up 9% and adjusted EBITDA up 17%; International revenue was essentially flat and segment EBITDA fell 8%, so the improvement was concentrated rather than broad-based. (Reconciliation Schedules; Segment Summary)
The forward reset is more important than the quarter’s small revenue shortfall. Full-year revenue growth guidance stayed at 6%-7%, but adjusted EBITDA growth guidance rose to 8%-10% from 7%-8%. The company also tightened its year-end net leverage target to 2.0x from the prior “low 2x” range and lowered expected interest expense to roughly $80 million from $85 million. (Updated 2026 Guidance)
Debt reduction adds credibility to the earnings improvement. Net debt fell to $1.09 billion and leverage to 2.4x at June 30, versus 2.8x at December 31, after $115 million of six-month long-term debt repayments. Operating cash flow also rose to $146.1 million from $50.7 million, although the company still carries substantial debt and International profitability remains a watchpoint. (Cash Flow statement; Net Debt to Adjusted EBITDA reconciliation)
Read the original 8-K on SEC EDGAR ↗