Segment Information

3 Months Ended

Mar. 31, 2026

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 three months ended March 31, 2026 and 2025 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 three months ended March 31, 2026 and 2025:

	Three Months Ended March 31, 2026
	EVS			Dietary			Total
	(in thousands, except for percentages)
Revenues	$	208,253		$	254,513		$	462,766
Significant Segment Expenses
Labor and labor-related1	159,934			148,080			308,014
Food, chemicals and supplies	15,253			77,543			92,796
Bad debt expense	3,639			145			3,784
Depreciation and amortization expense	1,059			775			1,834
Other segment items2	3,144			4,940			8,084
Segment profit	$	25,224		$	23,030		$	48,254
Segment margin	12.1		%	9.0		%
Unallocated expenses (income)
Corporate expenses3							$	15,987
Loss on deferred compensation plan investments							(1,570)
Other (income), net							(1,069)
Interest expense							365
Income before income taxes							$	34,541

1.Includes direct labor costs, field management costs (including certain costs included in selling, general and administrative expense), employer taxes, workers' compensation and general liability insurance.

2.Includes expenses for technology, employment advertising and onboarding, travel & entertainment and other expenses.

3.Represents selling, general and administrative expense less the amounts allocated to segments for labor and benefits.

	Three Months Ended March 31, 2025
	EVS			Dietary			Total
	(in thousands, except for percentages)
Revenues	$	196,338		$	251,324		$	447,662
Significant Segment Expenses
Labor and labor-related1	156,976			149,640			306,616
Food, chemicals and supplies	13,563			76,009			89,572
Bad debt expense	364			724			1,088
Depreciation and amortization expense	982			725			1,707
Other segment items2	3,265			5,133			8,398
Segment profit	$	21,188		$	19,093		$	40,281
Segment margin	10.8		%	7.6		%
Unallocated expenses (income)
Corporate expenses3							$	18,743
Loss on deferred compensation plan investments							(1,467)
Other (income), net							(1,284)
Interest expense							395
Income before income taxes							$	23,894

1.Includes direct labor costs, field management costs (including certain costs included in selling, general and administrative expense), employer taxes, workers' compensation and general liability insurance.

2.Includes technology, employment advertising and onboarding, travel & entertainment and other expenses.

3.Represents selling, general and administrative expense 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 three months ended March 31, 2026 and 2025.

	Three Months Ended March 31,
	2026		2025
	(in thousands)
Capital Expenditures
EVS	$	1,212	$	1,448
Dietary	169		324
Corporate	17		9
Consolidated	$	1,398	$	1,781