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Segment Information
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Information
Note 13 — Segment Information

The Company manages and evaluates its operations in two reportable segments: Environmental Services (housekeeping, laundry, linen and other services) and Dietary (dietary department services). Although both segments serve a similar customer base and share many operational similarities, they are managed separately due to distinct differences in the type of services provided, as well as the specialized expertise required of the professional management personnel responsible for delivering each segment’s services. Such services are rendered pursuant to discrete contracts, specific to each reportable segment.

The Chief Operating Decision Maker (“CODM”) for both segments for each of the years ended December 31, 2025, 2024, and 2023 was Theodore Wahl, the Company’s President and Chief Executive Officer. The Company’s CODM does not review assets by segment to assess segment performance or allocate resources, nor is such information provided to the CODM. Accordingly, the Company does not present assets by segment.
The Company’s Significant Segment Expenses for each segment include direct labor costs and segment-based management expenses (collectively, “labor and labor-related”), food, chemicals and supplies, bad debt expense, and depreciation & amortization, as these are specific costs regularly provided to the CODM and used to evaluate segment performance. Other segment items include expenses recorded within costs of services provided which are not regularly provided to the CODM. The CODM evaluates segment profit each period against historical results, factoring in macroeconomic factors such as the cost of labor and supplies, to assess segment performance.

The Company’s accounting policies for the segments are generally the same as described in the Company’s significant accounting policies. The Company does not allocate Corporate expenses, gains (losses) on deferred compensation plan investments, other (income) expense, net, interest expense and income tax provision to segments; such amounts are added to combined segment profit and reconciled to the Company’s consolidated income before income taxes. All revenues and net income are earned in the United States.

The following tables provide profit information disaggregated by the Company’s reportable segments for each of the years ended December 31, 2025, 2024, and 2023:

Year Ended December 31, 2025
EVSDietaryTotal
(in thousands, except for percentages)
Revenues$824,681 $1,012,492 $1,837,173 
Significant Segment Expenses
Labor and labor-related1
645,335 595,419 
Food, chemicals and supplies59,150 312,728 
Bad debt expense29,096 53,983 
Depreciation and amortization expense4,467 3,716 
Other segment items2
14,382 21,626 
Segment profit$72,251 $25,020 $97,271 
Segment margin8.8 %2.5 %
Unallocated expenses (income)
ERC refunds3
$(34,239)
Corporate expenses4
75,710 
Gain on deferred compensation plan investments7,261 
Other (income), net(20,907)
Interest expense1,580 
Income before income taxes$67,866 
1.Includes direct labor costs, field management costs (including certain costs included in selling, general and administrative expenses), employer taxes, workers' compensation and general liability insurance.
2.Includes expenses for technology, employment advertising, travel & entertainment, professional services and various other less significant expense items.
3.ERC refunds were excluded from segment results for each segment as the credits were related to services provided in previous years and not indicative of current period segment performance, as reviewed by the CODM.
4.Represents selling, general and administrative expenses less the amounts allocated to segments for labor and benefits.
Year Ended December 31, 2024
EVSDietaryTotal
(in thousands, except for percentages)
Revenues$765,368 $950,314 $1,715,682 
Significant Segment Expenses
Labor and labor-related1
600,198 537,446 
Food, chemicals and supplies56,504 308,859 
Bad debt expense14,101 32,659 
Depreciation and amortization expense3,701 2,856 
Other segment items2
15,454 22,473 
Segment profit$75,410 $46,021 $121,431 
Segment margin9.9 %4.8 %
Unallocated expenses (income)
Corporate expenses3
$68,160 
Gain on deferred compensation plan investments8,241 
Other (income), net(14,349)
Interest expense6,438 
Income before income taxes$52,941 
1.Includes direct labor costs, field management costs (including certain costs included in selling, general and administrative expenses), employer taxes, workers' compensation and general liability insurance.
2.Includes expenses for technology, employment advertising, travel & entertainment, professional services and various other less significant expense items.
3.Represents selling, general and administrative expenses less the amounts allocated to segments for labor and benefits.

Year Ended December 31, 2023
EVSDietaryTotal
(in thousands, except for percentages)
Revenues$766,651 $904,738 $1,671,389 
Significant Segment Expenses
Labor and labor-related1
599,881 522,052 
Food, chemicals and supplies58,627 294,690 
Bad debt expense17,557 18,046 
Depreciation and amortization3,664 3,779 
Other segment items2
14,907 21,446 
Segment profit$72,015 $44,725 $116,740 
Segment margin9.4 %4.9 %
Unallocated expenses (income)
Corporate expenses3
$62,082 
Gain on deferred compensation plan investments6,684 
Other (income), net(12,938)
Interest expense7,856 
Income before income taxes$53,056 
1.Includes direct labor costs, field management costs (including certain costs included in selling, general and administrative expenses), employer taxes, workers' compensation and general liability insurance.
2.Includes expenses for technology, employment advertising, travel & entertainment, professional services and various other less significant expense items.
3.Represents selling, general and administrative expenses less the amounts allocated to segments for labor and benefits.
The following table provides capital expenditures disaggregated by the Company’s reportable segments for each of the years ended December 31, 2025, 2024, and 2023:

Year Ended December 31,
202520242023
(in thousands)
Capital expenditures
EVS$4,526 $5,166 $4,684 
Dietary879 936 494 
Corporate overhead413 234 228 
Consolidated$5,818 $6,336 $5,406