Segment Information

3 Months Ended

Mar. 31, 2026

Segment Reporting [Abstract]

Segment Information

Segment Information

Our operating segments are aggregated into two reportable segments: Warehouse and Transportation.

Beginning with the period ended March 31, 2026, the Company's former Third-Party Managed reportable segment is included under the Warehouse reportable segment. All prior period comparative financial information has been recast to reflect the revised segment structure. Refer to Note 1 - General for further details on this change.

•Warehouse. Our core business is our Warehouse segment, where we provide temperature-controlled warehouse storage and related handling and other warehouse services. We collect rent and storage fees to store customers’ frozen and perishable food and other products. Our handling services optimize our customers’ product movement through the cold chain, including placement, case-picking, blast freezing, e-commerce fulfillment, and other recurring handling services. Further, we manage warehouses on behalf of third parties and provide warehouse management services to leading food manufacturers and retailers in their owned facilities.

Significant Warehouse segment expenses include labor, power, other facilities costs, and other service costs.

Labor - Labor, the most significant part of warehouse expenses, covers wages, benefits, workers' compensation.

Power - The cost of power, also a significant cost of operations, fluctuates based on the price of power in the regions that our facilities operate and the required temperature zone or freezing required.

Other Facilities Costs - Other facilities costs include utilities other than power, property taxes and insurance, sanitation, repairs and maintenance, operating lease rent charges, security, and other related facilities costs.

Other Services Costs - Other services costs include equipment costs, warehouse consumables (e.g., shrink-wrap), employee protective equipment, warehouse administration and other related services costs.

•Transportation. In our Transportation segment, we broker, manage or operate transportation of frozen and perishable food and other products for our customers. Our services include consolidation (i.e., combining products for efficient shipment), freight under management services (i.e., arranging and overseeing transportation of customer inventory) and dedicated transportation, each designed to improve efficiency and reduce transportation and logistics costs to our customers.

Transportation services cost of operations are primarily affected by third-party carrier costs, which are influenced by carrier factors like driver and equipment availability. In select markets, we use our drivers and assets, incurring costs like wages, fuel, tolls, insurance, and maintenance to operate these assets.

The accounting policies used in the preparation of our reportable segments financial information are the same as those used in the preparation of our Condensed Consolidated Financial Statements. Our CODM is our Chief Executive Officer, who uses segment contribution to evaluate segment performance and to allocate resources. The CODM considers budget-to-actual variances on a monthly, quarterly, and annual basis using the segment profit or loss measure when making decisions about allocating capital and personnel to the segments. The CODM also uses the segment profit or loss measure to assess the performance for each segment by comparing the results and return on specific assets of within each segment with one another and industry competitors.

Segment contribution metrics help investors understand revenues, costs, and earnings among service types. Segment contribution is calculated as earnings before interest expense, taxes, depreciation and amortization, and excluding corporate Selling, general, and administrative expense; Transactions, strategic initiatives and other costs, net; Net gain from sale of real estate and all components of non-operating other income and expense.

Selling, general, and administrative functions support all the business segments. Therefore, the related expense is not allocated to segments as the CODM does not use it to evaluate segment performance and to allocate resources. Segment contribution is not a measurement of financial performance under U.S. GAAP and should not be considered an alternative to operating income. The Company has not disclosed assets by reportable segments, as asset information is not used by our CODM to facilitate resource allocations.

The following table presents segment revenues, significant segment expenses and segment contribution with a reconciliation to Loss before income taxes for the three months ended March 31, 2026 and 2025:

	Three Months Ended March 31,
	2026		2025
	(In thousands)
Segment revenues:
Warehouse(1)	$	577,913	$	584,987
Transportation	51,957		43,993
Total revenues	629,870		628,980
Significant Segment Expenses:
Warehouse(1):
Power	33,823		31,711
Other facilities costs(2)	61,223		59,723
Labor	252,718		247,444
Other services costs(2)	43,443		47,515
Total warehouse cost of operations	391,207		386,393
Transportation services cost of operations	43,154		36,739
Total segment expenses	$	434,361	$	423,132
Segment contribution:
Warehouse(1)	186,706		198,594
Transportation	8,803		7,254
Total segment contribution	195,509		205,848
Depreciation and amortization expense	(91,660)		(88,982)
Selling, general, and administrative expense	(71,319)		(69,235)
Transactions, strategic initiatives and other costs, net	(20,445)		(25,414)
Net gain from sale of real estate	2,205		—
Interest expense	(41,519)		(36,117)
Loss from investments in partially owned entities	(412)		(1,363)
Other, net	7,383		1,296
Loss before income taxes	$	(20,258)	$	(13,967)

(1)Prior period Warehouse segment financial results have been recast to include the Company’s former Third-Party Managed reportable segment.

(2)Certain immaterial prior period amounts have been reclassified to conform to the current period presentation.