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Nextdoor and Freshpaint Partner to Give Healthcare Advertisers Compliant, Measurable Local Performance

Healthcare advertisers can now measure what hyperlocal advertising actually drives, reaching verified neighbors and household decision-makers without the compliance risk

SAN FRANCISCO–(BUSINESS WIRE)–
Nextdoor, the essential neighborhood network, and Freshpaint, the privacy-safe customer data platform built for healthcare, today announced a new integration that enables healthcare advertisers to measure the impact of hyperlocal advertising on real patient outcomes – without compromising privacy or compliance. The integration connects Nextdoor’s Ads Manager to Freshpaint’s privacy-first platform, allowing healthcare marketing teams to form a direct, controlled link between neighborhood-level campaign performance and downstream patient actions like booked appointments, attended visits, and new patient volume.

With the Nextdoor-Freshpaint integration, healthcare marketers can unlock access to metrics that go beyond clicks and form fills, connecting their hyperlocal campaigns to bottom-funnel conversions so they can confidently double down on hyperlocal advertising as a measurable, scalable driver of patient acquisition.

The integration delivers:

• Incremental local reach among verified household decision-makers not duplicated by search or other social platforms
• Neighborhood-level attribution tied to specific service lines, zip codes, and campaigns – not just clicks and impressions
• PHI protection by default through server-side data collection with full governance and auditability
• A single view of local growth from first neighborhood exposure to patient acquisition

“Healthcare marketers shouldn’t have to trade off between performance and privacy,” said Jason Powers, Vice President of Product at Freshpaint. “By turning hyperlocal advertising into a true performance channel with Nextdoor, we’re empowering healthcare organizations to see exactly which neighborhoods and campaigns lead to patient actions – so they can measure what’s working and improve performance, without compromising privacy.”

“Healthcare is deeply personal, and the decisions patients make start close to home – with neighbors, local recommendations, and trusted community conversations,” said Michael Kiernan, Chief Revenue Officer at Nextdoor. “Nextdoor is the only platform that reaches 110 million verified neighbors at their real addresses, which means healthcare advertisers aren’t just buying impressions, they’re reaching actual household decision-makers in the specific neighborhoods they serve.”

The Freshpaint-Nextdoor integration is available now. Healthcare advertisers interested in getting started can visit business.nextdoor.com to learn more.

About Nextdoor

Nextdoor is the essential neighborhood network for over 110 million verified neighbors, offering trusted local news, real-time safety alerts, neighbor recommendations, for sale and free listings, and local events. Nextdoor connects neighbors to the people, places, and information that matter most in their local communities. In addition, businesses, news publishers, and public agencies use Nextdoor to share important information and engage with neighbors at scale. Download the app or join the neighborhood at nextdoor.com. For more information and media assets, visit nextdoor.com/newsroom.

About Freshpaint

Freshpaint is built for healthcare marketers to deliver measurable performance while safeguarding patient trust in a complex regulatory environment. Bringing privacy and performance together in one platform, Freshpaint enables healthcare organizations to securely connect and activate data across channels, connect marketing spend to outcomes, and confidently scale growth. Headquartered in San Francisco, Freshpaint partners with more than 250 healthcare organizations – including enterprise providers, payers, digital health companies, agencies, and consumer health brands – so that marketers are empowered to stretch fixed budgets, prove what’s working, and turn privacy into a strategic advantage that fuels performance.

To learn more, visit freshpaint.io and follow Freshpaint on LinkedIn.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260512170221/en/

Media Relations:

Kelsey Grady

[email protected]

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Technology Construction & Property Marketing Advertising Communications Health Technology Software Practice Management Health Residential Building & Real Estate

MEDIA:

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NGL Energy Partners Announces Earnings Call

TULSA, Okla.–(BUSINESS WIRE)–
NGL Energy Partners LP (NYSE: NGL) announced today that it plans to issue its year ended March 31, 2026, earnings press release, post-market close on Thursday, May 28, 2026. Members of NGL’s management team intend to host an earnings call following this release on Thursday, May 28, 2026, at 4:00 pm CDT to discuss its financial results. Analysts, investors, and other interested parties may join the webcast via the event link: https://www.webcaster5.com/Webcast/Page/2808/54031 or by dialing (888) 506-0062 and providing conference code: 941890. An archived audio replay of the call will be available for 14 days, which can be accessed by dialing (877) 481-4010 and providing replay passcode 54031.

About NGL Energy Partners LP

NGL Energy Partners LP, a Delaware limited partnership, operates the largest integrated network of large diameter wastewater pipelines, disposal wells and produced water handling systems in the Delaware Basin. NGL also operates wastewater disposal in the Eagle Ford and DJ Basins. In addition, NGL markets and provides other logistics services for crude oil, through its ownership of the Grand Mesa Pipeline System, Cushing terminal and other Gulf Coast terminals. For further information, visit the Partnership’s website at www.nglenergypartners.com.

This release is a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat 100% of NGL Energy Partners LP’s distributions to foreign investors as being attributable to income that is effectively connected with a United States trade or business. Therefore, distributions to foreign investors are subject to federal income tax withholding at the highest applicable effective tax rate.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260511052415/en/

NGL Energy Partners LP

David Sullivan, 918.495.4631

Vice President – Finance

[email protected]

KEYWORDS: Oklahoma United States North America

INDUSTRY KEYWORDS: Energy Other Energy Oil/Gas

MEDIA:

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Zebra Technologies Announces First-Quarter 2026 Results

Delivers strong first-quarter 2026 performance with broad-based growth across segments and regions

Increases outlook for the full year 2026

LINCOLNSHIRE, Ill.–(BUSINESS WIRE)–Zebra Technologies Corporation (NASDAQ: ZBRA), a global leader in digitizing and automating workflows to deliver intelligent operations, today announced results for the first quarter ended April 4, 2026.

First-Quarter Financial Highlights

• Net sales of $1,495 million; year-over-year increase of 14.3%

• Net income of $135 million and net income per diluted share of $2.72

• Non-GAAP diluted EPS increased year-over-year to $4.75

• Adjusted EBITDA increased year-over-year to $347 million

• Share repurchases of $300 million

“Our strong first quarter results demonstrate the durability of demand for our innovative technology, with organic growth across our segments and regions, led by strength in our manufacturing end market. Elo Touch also contributed solid profitable growth as we begin to drive synergies,” said Bill Burns, Chief Executive Officer of Zebra Technologies. “These results underscore the value Zebra delivers as the foundation for intelligent operations across the frontline, helping customers operate more efficiently and effectively.”

“We are building on our track record of value creation for shareholders with $300 million of share repurchases in each of the past two quarters, supported by our strong balance sheet and cash flow,” said Nathan Winters, Chief Financial Officer of Zebra Technologies. “Our results reflect our focus on profitable growth, operating discipline and margin expansion, and we remain confident in our ability to support customer demand while delivering consistent performance in a dynamic environment.”

$ in millions, except per share amounts		1Q26			1Q25		Change
Select reported measures:
Net sales	$	1,495		$	1,308		14.3	%
Gross profit		742			645		15.0	%
Gross margin		49.6	%		49.3	%	30 bps
Net income		135			136		(0.7	%)
Net income margin		9.0	%		10.4	%	(140) bps
Net income per diluted share	$	2.72		$	2.62		3.8	%
Select Non-GAAP measures:
Adjusted net sales	$	1,495		$	1,308		14.3	%
Organic net sales growth							4.3	%
Adjusted gross profit		753			649		16.0	%
Adjusted gross margin		50.4	%		49.6	%	80 bps
Adjusted EBITDA		347			292		18.8	%
Adjusted EBITDA margin		23.2	%		22.3	%	90 bps
Non-GAAP net income	$	235		$	208		13.0	%
Non-GAAP earnings per diluted share	$	4.75		$	4.02		18.2	%

Net sales were $1,495 million in the first quarter of 2026 compared to $1,308 million in the prior year. Net sales in the Connected Frontline (“CF”) segment were $825 million in the first quarter of 2026 compared to $684 million in the prior year. Asset Visibility & Automation (“AVA”) segment net sales were $670 million in the first quarter of 2026 compared to $624 million in the prior year. Consolidated organic net sales for the first quarter of 2026 increased 4.3% year-over-year, with a 3.8% increase in the CF segment and a 4.8% increase in the AVA segment.

First quarter 2026 gross profit was $742 million compared to $645 million in the prior year. Gross margin increased to 49.6% for the first quarter of 2026 compared to 49.3% in the prior year primarily due to favorable foreign currency exchange and business mix, and productivity initiatives. Adjusted gross margin was 50.4% in the first quarter of 2026 compared to 49.6% in the prior year.

Operating expenses increased to $527 million in the first quarter of 2026 from $450 million in the prior year primarily due to expenses associated with acquired businesses including amortization of intangible assets. Adjusted operating expenses increased to $425 million in the first quarter of 2026 from $374 million in the prior year.

Net income for the first quarter of 2026 was $135 million, or $2.72 per diluted share, compared to net income of $136 million, or $2.62 per diluted share, in the prior year. Non-GAAP net income increased to $235 million for the first quarter of 2026, or $4.75 per diluted share, compared to $208 million, or $4.02 per diluted share, for the prior year.

Adjusted EBITDA for the first quarter of 2026 increased to $347 million, or 23.2% of adjusted net sales, compared to $292 million, or 22.3% of adjusted net sales in the prior year due to higher gross margin and lower adjusted operating expense as a percentage of sales.

Balance Sheet and Cash Flow

As of April 4, 2026, the Company had cash and cash equivalents of $114 million and total debt of $2,660 million.

For the first three months of 2026, net cash provided by operating activities was $176 million and the Company invested $13 million in capital expenditures, resulting in free cash flow of $163 million. The Company also made share repurchases of $300 million.

Outlook

Mr. Burns added, “We are seeing continued momentum into the second quarter, supporting our increased outlook for the full year. Zebra’s integrated portfolio of solutions is a key differentiator, enabling customers to connect data, assets and workflows to drive visibility and productivity. As e-commerce, automation and Physical AI trends accelerate, we are well positioned to drive profitable growth, build on our market leadership and innovation, and strengthen our financial position to deliver long-term shareholder value.”

Second Quarter 2026

The Company expects second quarter sales growth between 14% and 17% compared to the prior year. This expectation includes approximately 10.5 points of favorable net impact from business acquisitions and foreign currency.

Adjusted EBITDA margin for the second quarter is expected to be slightly higher than 21%. Non-GAAP diluted earnings per share are expected to be in the range of $4.20 to $4.50. This assumes an adjusted effective tax rate of approximately 19%.

Full Year 2026

The Company expects full year sales growth between 10% and 14% compared to the prior year. This expectation includes approximately 7 points of favorable net impact from business acquisitions and foreign currency.

Adjusted EBITDA margin for the full year is expected to be approximately 22%. Non-GAAP diluted earnings per share are expected to be in the range of $18.30 to $18.70. This assumes an adjusted effective tax rate of approximately 19%.

Free Cash Flow for the full year is expected to be greater than $900 million.

The Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or amount of the most directly comparable forward-looking GAAP financial measure as discussed under the “Forward-Looking Statements” caption below. This would include items that have not yet occurred, are out of the Company’s control and/or cannot be reasonably predicted, and that would impact diluted net earnings per share. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

Conference Call Notification

Investors are invited to listen to a live webcast of Zebra’s conference call regarding the Company’s financial results. The conference call will be held today at 7:30 a.m. Central Time (8:30 a.m. Eastern Time). To view the webcast, visit the investor relations section of the Company’s website at investors.zebra.com.

Who is Zebra Technologies

Zebra (NASDAQ: ZBRA) provides the foundation for intelligent operations with an award-winning portfolio of connected frontline, asset visibility and automation solutions which empower our customers to deploy AI on the frontline. Organizations globally across retail, manufacturing, transportation, logistics, healthcare, and other industries rely on us to deliver outcomes today while driving innovation for what’s next. Together with our partners, we create new ways of working that improve productivity and empower organizations to be better every day. Learn more at www.zebra.com.

Follow Zebra on our Blog, LinkedIn, Facebook, X, Instagram and YouTube.

Forward-Looking Statements

This press release contains forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995, including, without limitation, the statements regarding the company’s outlook. Actual results may differ from those expressed or implied in the company’s forward-looking statements. These statements represent estimates only as of the date they were made. Zebra undertakes no obligation, other than as may be required by law, to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason after the date of this release.

These forward-looking statements are based on current expectations, forecasts and assumptions and are subject to the risks and uncertainties inherent in Zebra’s industry, market conditions, general domestic and international economic conditions, and other factors. These factors include customer acceptance of Zebra’s offerings and competitors’ offerings, and the potential effects of emerging technologies and changes in customer requirements. The effect of global market conditions, and the availability of credit and capital markets volatility may have adverse effects on Zebra, its suppliers and its customers. In addition, natural disasters, man-made disasters, public health issues (including pandemics), and cybersecurity incidents may have negative effects on Zebra’s business and results of operations. Zebra’s ability to purchase sufficient materials, parts, and components, and ability to provide services, software and products to meet customer demand could negatively impact Zebra’s results of operations and customer relationships. Profits and profitability will be affected by Zebra’s ability to control manufacturing and operating costs. Because of its debt, interest rates and financial market conditions may also have an adverse impact on results. Foreign exchange rates, customs duties and trade policies may have an adverse effect on financial results because of the global nature of Zebra’s business. The impacts of changes in foreign and domestic governmental policies, regulations, or laws, as well as the outcome of litigation or tax matters in which Zebra may be involved are other factors that could adversely affect Zebra’s business and results of operations. The success of integrating acquisitions could also adversely affect profitability, reported results and the company’s competitive position in its industry. These and other factors could have an adverse effect on Zebra’s sales, gross profit margins and results of operations and increase the volatility of Zebra’s financial results. When used in this release and documents referenced, the words “anticipate,” “believe,” “outlook,” and “expect” and similar expressions, as they relate to the Company or its management, are intended to identify such forward-looking statements, but are not the exclusive means of identifying these statements. Descriptions of certain risks, uncertainties and other factors that could adversely affect the Company’s future operations and results can be found in Zebra’s filings with the Securities and Exchange Commission, including the Company’s most recent Form 10-K and Form 10-Q.

Use of Non-GAAP Financial Information

This press release contains certain Non-GAAP financial measures, consisting of “Adjusted EBITDA,” “Adjusted EBITDA margin,” “adjusted gross margin,” “adjusted gross profit,” “adjusted net sales,” “adjusted operating expenses,” “adjusted operating income,” “EBITDA,” “free cash flow,” “non-GAAP diluted earnings per share,” “non-GAAP earnings per share,” “non-GAAP net income,” “organic net sales,” and “organic net sales growth.” Management presents these measures to focus on the on-going operations and believes it is useful to investors because they enable them to perform meaningful comparisons of past and present operating results. The company believes it is useful to present non-GAAP financial measures, which exclude certain significant items, as a means to understand the performance of its ongoing operations and how management views the business. Please see the “Reconciliation of GAAP to Non-GAAP Financial Measures” tables and accompanying disclosures at the end of this press release for more detailed information regarding non-GAAP financial measures herein, including the items reflected in adjusted net earnings calculations. These measures, however, should not be construed as an alternative to any other measure of performance determined in accordance with GAAP.

The company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis (including the information under “Outlook” above) where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred, are out of the company’s control and/or cannot be reasonably predicted, and that would impact diluted net earnings per share, the most directly comparable forward-looking GAAP financial measure. For the same reasons, the company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

As a global company, Zebra’s operating results reported in U.S. dollars are affected by foreign currency exchange rate fluctuations because the underlying foreign currencies in which the company transacts change in value over time compared to the U.S. dollar; accordingly, the company presents certain organic growth financial information, which includes impacts of foreign currency translation, to provide a framework to assess how the company’s businesses performed excluding the impact of foreign currency exchange rate fluctuations. Foreign currency impact represents the difference in results that are attributable to fluctuations in the currency exchange rates used to convert the results for businesses where the functional currency is not the U.S. dollar. This impact is calculated by translating current period results at the currency exchange rates used in the comparable prior year period as well as removing realized cash flow hedge gains and losses from both the current and prior year periods. The company believes these measures should be considered a supplement to and not in lieu of the company’s performance measures calculated in accordance with GAAP.

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions, except per share data)
	April 4, 2026				December 31, 2025
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	114			$	125
Accounts receivable, net of allowances for doubtful accounts of $1 million each as of April 4, 2026 and December 31, 2025		733				801
Inventories, net		692				729
Income tax receivable		30				31
Prepaid expenses and other current assets		126				110
Total Current assets		1,695				1,796
Property, plant and equipment, net		350				353
Right-of-use lease assets		170				166
Goodwill		4,709				4,727
Other intangibles, net		765				809
Deferred income taxes		410				414
Other long-term assets		233				237
Total Assets	$	8,332			$	8,502
Liabilities and Stockholders’ Equity
Current liabilities:
Current portion of long-term debt	$	264			$	141
Accounts payable		581				695
Accrued liabilities		459				558
Deferred revenue		434				446
Income taxes payable		25				12
Total Current liabilities		1,763				1,852
Long-term debt		2,387				2,361
Long-term lease liabilities		158				157
Deferred income taxes		32				32
Long-term deferred revenue		398				396
Other long-term liabilities		124				116
Total Liabilities		4,862				4,914
Stockholders’ Equity:
Preferred stock, $.01 par value; authorized 10,000,000 shares; none issued		—				—
Class A common stock, $.01 par value; authorized 150,000,000 shares; issued 72,151,857 shares		1				1
Additional paid-in capital		866				814
Treasury stock at cost, 23,768,847 and 22,558,911 shares as of April 4, 2026 and December 31, 2025, respectively		(2,787	)			(2,488	)
Retained earnings		5,414				5,279
Accumulated other comprehensive loss		(24	)			(18	)
Total Stockholders’ Equity		3,470				3,588
Total Liabilities and Stockholders’ Equity	$	8,332			$	8,502

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except share data)
(Unaudited)
	Three Months Ended
	April 4, 2026				March 29, 2025
Net sales:
Tangible products	$	1,231			$	1,062
Services and software		264				246
Total Net sales		1,495				1,308
Cost of sales:
Tangible products		623				542
Services and software		130				121
Total Cost of sales		753				663
Gross profit		742				645
Operating expenses:
Selling and marketing		189				161
Research and development		165				151
General and administrative		127				111
Amortization of intangible assets		37				24
Acquisition and integration costs		1				3
Exit and restructuring costs		8				—
Total Operating expenses		527				450
Operating income		215				195
Other (loss) income, net:
Foreign exchange loss		—				(5	)
Interest expense, net		(37	)			(23	)
Other expense, net		(11	)			(2	)
Total Other expense, net		(48	)			(30	)
Income before income tax		167				165
Income tax expense		32				29
Net income	$	135			$	136
Basic earnings per share	$	2.74			$	2.64
Diluted earnings per share	$	2.72			$	2.62

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
	Three Months Ended
	April 4, 2026				March 29, 2025
Cash flows from operating activities:
Net income	$	135			$	136
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		56				41
Loss on sale of investments		15				—
Share-based compensation		58				51
Deferred income taxes		—				(23	)
Gain on sale of business		(5	)			—
Other, net		1				1
Changes in operating assets and liabilities:
Accounts receivable, net		67				84
Inventories, net		34				15
Other assets		(12	)			3
Accounts payable		(119	)			(76	)
Accrued liabilities		(67	)			(110	)
Deferred revenue		(11	)			16
Income taxes		24				42
Other operating activities		—				(2	)
Net cash provided by operating activities		176				178
Cash flows from investing activities:
Acquisition of business		—				(62	)
Proceeds from the sale of business		9				—
Purchases of property, plant and equipment		(13	)			(20	)
Proceeds from sale of long-term investments		1				—
Other investing activities		1				—
Net cash used in investing activities		(2	)			(82	)
Cash flows from financing activities:
Payments of debt		(37	)			—
Proceeds from issuance of debt		186				—
Payments for repurchases of common stock		(300	)			(125	)
Net payments related to share-based compensation plans		(5	)			(1	)
Change in unremitted cash collections from servicing factored receivables		(29	)			2
Other financing activities		—				5
Net cash used in financing activities		(185	)			(119	)
Effect of exchange rate changes on cash and cash equivalents		—				1
Net decrease in cash and cash equivalents		(11	)			(22	)
Cash and cash equivalents at beginning of period		125				901
Cash and cash equivalents at end of period	$	114			$	879
Supplemental disclosures of cash flow information:
Income taxes paid	$	15			$	9
Interest paid	$	26			$	16

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
RECONCILIATION OF ORGANIC NET SALES GROWTH
(Unaudited)
	Three Months Ended
	April 4, 2026
	CF			AVA			Consolidated
Consolidated Reported GAAP Net sales growth	20.6	%		7.4	%		14.3	%
Adjustments:
Impact of foreign currency translations (1)	(2.1	)%		(2.2	)%		(2.1	)%
Impact of acquisitions (2)	(14.7	)%		(0.4	)%		(7.9	)%
Consolidated Organic Net sales growth	3.8	%		4.8	%		4.3	%

(1)		Operating results reported in U.S. Dollars are affected by foreign currency exchange rate fluctuations. Foreign currency translation impact represents the difference in results that are attributable to fluctuations in the currency exchange rates used to convert the results for businesses where the functional currency is not the U.S. Dollar. This impact is calculated by translating the current period results at the currency exchange rates used in the comparable prior year period as well as removing realized cash flow hedge gains and losses from both the current and prior year periods.
(2)		For purposes of computing Organic Net sales growth, amounts attributable to business acquisitions or dispositions are excluded for twelve months following or preceding the respective acquisition or disposition, respectively.

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP GROSS MARGIN AND OPERATING INCOME
($ In millions)
(Unaudited)
	Three Months Ended
	April 4, 2026												March 29, 2025
	CF				AVA				Consolidated				CF				AVA				Consolidated
GAAP
Reported Net sales	$	825			$	670			$	1,495			$	684			$	624			$	1,308
Reported Gross profit (1)		405				348				742				333				316				645
Gross Margin		49.1	%			51.9	%			49.6	%			48.7	%			50.6	%			49.3	%
Operating Income (2)		169				159				215				140				135				195
Non-GAAP
Adjusted Net sales	$	825			$	670			$	1,495			$	684			$	624			$	1,308
Adjusted Gross profit (1)		405				348				753				333				316				649
Adjusted Gross Margin		49.1	%			51.9	%			50.4	%			48.7	%			50.6	%			49.6	%
Adjusted Operating Income (2)		169				159				328				140				135				275

(1)		Segment and Adjusted Gross profit excludes share-based compensation expense and business acquisition purchase accounting adjustments.
(2)		Segment and Non-GAAP Operating income excludes share-based compensation expense, business acquisition purchase accounting adjustments, amortization of intangible assets, acquisition and integration costs, exit and restructuring costs, as well as certain other non-recurring costs (impairment of goodwill and other intangible assets).

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP NET INCOME
($ In millions, except share data)
(Unaudited)
	Three Months Ended
	April 4, 2026				March 29, 2025
GAAP Net income	$	135			$	136
Adjustments to Cost of sales(1)
Purchase accounting adjustments		5				—
Share-based compensation		6				4
Total adjustments to Cost of sales		11				4
Adjustments to Operating expenses(1)
Amortization of intangible assets		37				24
Acquisition and integration costs		1				3
Share-based compensation		56				49
Exit and restructuring costs		8				—
Total adjustments to Operating expenses		102				76
Adjustments to Other expense, net(1)
Amortization of debt issuance costs and discounts		1				1
Loss on sale of investments		15				—
Foreign exchange loss		—				5
Gain on sale of business		(5	)
Total adjustments to Other expense, net		11				6
Income tax effect of adjustments(2)
Reported income tax expense		32				29
Adjusted income tax		(56	)			(43	)
Total adjustments to income tax		(24	)			(14	)
Total adjustments		100				72
Non-GAAP Net income	$	235			$	208
GAAP earnings per share
Basic	$	2.74			$	2.64
Diluted	$	2.72			$	2.62
Non-GAAP earnings per share
Basic	$	4.79			$	4.06
Diluted	$	4.75			$	4.02
Basic weighted average shares outstanding		49,017,288				51,365,011
Diluted weighted average and equivalent shares outstanding		49,428,337				51,806,550

(1)		Presented on a pre-tax basis.
(2)		Represents adjustments to GAAP income tax expense commensurate with pre-tax non-GAAP adjustments (including the resulting impacts to U.S. BEAT/GILTI provisions), as well as adjustments to exclude the impacts of certain discrete income tax items and incorporate the anticipated annualized effects of current year tax planning.

ZEBRA TECHNOLOGIES CORPORATION AND SUBSIDIARIES
GAAP to NON-GAAP RECONCILIATION TO EBITDA
($ In millions)
(Unaudited)
	Three Months Ended
	April 4, 2026				March 29, 2025
GAAP Net income	$	135			$	136
Add back:
Depreciation (excluding exit and restructuring)		19				17
Amortization of intangible assets		37				24
Total Other expense, net		48				30
Income tax expense		32				29
EBITDA (Non-GAAP)		271				236
Adjustments to Cost of sales
Purchase accounting adjustments		5				—
Share-based compensation		6				4
Total adjustments to Cost of sales		11				4
Adjustments to Operating expenses
Acquisition and integration costs		1				3
Share-based compensation		56				49
Exit and restructuring costs		8				—
Total adjustments to Operating expenses		65				52
Total adjustments to EBITDA		76				56
Adjusted EBITDA (Non-GAAP)	$	347			$	292
Adjusted EBITDA margin (Non-GAAP)		23.2	%			22.3	%

FREE CASH FLOW
	Three Months Ended
	April 4, 2026				March 29, 2025
Net cash provided by operating activities	$	176			$	178
Less: Purchases of property, plant and equipment		(13	)			(20	)
Free cash flow (Non-GAAP)(1)	$	163			$	158
(1) Free cash flow, a non-GAAP measure, is defined as Net cash provided by (used in) operating activities in a period minus purchases of property, plant and equipment (capital expenditures) made in that period.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260512349117/en/

Investors

Michael Steele, CFA, IRC

Vice President, Investor Relations

Phone: + 1 847 518 6432

[email protected]

Media

Therese Van Ryne

Senior Director, External Communications

Phone: + 1 847 370 2317

[email protected]

KEYWORDS: Illinois United States North America

INDUSTRY KEYWORDS: Data Management Technology Other Technology Software Networks Artificial Intelligence Internet

MEDIA:

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Aramark Reports Second Quarter Earnings

YEAR-OVER-YEAR SUMMARY

Note: As previously disclosed, the calendar shift resulting from the 53rd week in fiscal 2025 affects quarterly comparisons in fiscal 2026

• Revenue +15%; Organic Revenue +12%
  • Performance led by broad-based net new business and base business growth in both FSS United States and International; Approximately 3% benefit to Revenue and Organic Revenue growth from the calendar shift

  • New business wins have already reached a record $1 billion this fiscal year to date; High client retention rate exceeding 98% across the Company

• Operating Income +26%; Adjusted Operating Income (AOI) +24%¹
  • Enhanced technology capabilities resulted in additional productivity gains; Approximately 14% and 12% benefit to Operating Income and AOI growth, respectively, from the calendar shift

  • Profitability growth reflected strong revenue levels, supply chain efficiencies, and effective above-unit cost management

• GAAP EPS +65% to $0.38; Adjusted EPS +40%¹ to $0.49
  • Continued momentum in top and bottom line financial performance; Approximately 30% and 20% benefit to GAAP EPS and Adjusted EPS growth, respectively, from the calendar shift

  • Favorable business trends occurring throughout the organization

• Disciplined Capital Allocation Priorities Contributed to Strong Cash Flow
  • Net cash provided by operating activities of $400 million, +56%; Free Cash Flow of $305 million, +116%, with more than $1.4 billion in cash availability

  • Proactively repaid $55 million of 2030 Term Loans; Repurchased approximately $25 million of stock

• Recently Entered Hyperscale AI Data Center Market Offering Integrated Suite of Capabilities
  • Launched Aramark Nexus^™, a new platform delivering hospitality and workforce support services for hyperscale AI data centers and other large-scale, complex, and often remote operating environments

  • New multi-year agreement with a top global hyperscaler underway; Significant pipeline of growth opportunities for Aramark Nexus^™

PHILADELPHIA–(BUSINESS WIRE)–
Aramark (NYSE: ARMK) today reported second quarter fiscal 2026 results.

1	On a constant currency basis

“Our financial results underscore the continued momentum at the Company driven by our unwavering focus on delivering hospitality excellence,” said John Zillmer, Aramark’s Chief Executive Officer. “With exceptionally strong business trends across sectors and geographies, we’ve updated our fiscal 2026 Outlook to the high end of our previously stated expectations for Organic Revenue growth. This reflects our team’s disciplined execution of our growth strategies as we continue to achieve new milestones.”

“We’re excited about our entry into the hyperscale AI data center market with the launch of Aramark Nexus™ where we bring proven expertise in highly complex operations and an established competitive advantage. As we execute on our new multi-year engagement with a top global hyperscaler, this client is expected to become the largest in our portfolio. We believe there is substantial growth potential with this client and other hyperscalers, combined with the existing sales momentum occurring throughout our broader portfolio.”

SECOND QUARTER RESULTS

Consolidated revenue was $4.9 billion in the second quarter, a 15% increase year-over-year. The favorable effect of currency translation increased revenue by approximately $101 million. Organic Revenue, which excludes the effect of currency translation, was higher by 12% compared to the same year-ago period. Growth was led by broad-based net new business and base business expansion across sectors and geographies. The calendar shift from the 53rd week in the prior year increased Revenue and Organic Revenue growth by an estimated 3%, principally in the Education sector within the FSS United States segment.

	Revenue
	Q2 ’26	Q2 ’25	Change (%)		Organic Revenue Change (%)
FSS United States	$3,430M	$3,056M	12 %		12 %
FSS International	1,477	1,223	21 %		13 %
Total Company	$4,907M	$4,279M	15 %		12 %
May not total due to rounding
Difference between Change (%) and Organic Revenue Change (%) is the effect of currency translation

• FSS United States revenue growth was led by 1) Sports, Leisure & Corrections primarily from higher per cap spending and attendance levels in Sports & Entertainment, which included Opening Day of Major League Baseball and the World Baseball Classic, as well as the NCAA Basketball Tournament; 2) Business & Industry from sustained double-digit growth with significant new business contribution, exceptionally high client retention rates, elevated catering demand, and an expanded Refreshments client base; and 3) Healthcare from onboarding new business. Revenue and Organic Revenue growth also benefited by approximately 4% from the calendar shift.

• FSS International revenue growth was across all geographies, driven by ongoing base business expansion and net new business performance—which included double-digit growth in both Europe and Canada, and Emerging Markets experiencing high-single digit growth on an organic basis. The calendar shift positively affected Revenue and Organic Revenue growth by an estimated 1%. Revenue on a GAAP basis included the favorable effect of currency translation.

Operating Income was $220 million, an increase of 26% compared to the prior year period, and AOI grew 24%¹ to $258 million. The quarter benefited from higher revenue levels, productivity gains in food and labor, supply chain efficiencies, and effective above-unit cost management. The calendar shift contributed to profitability growth by an estimated $25 million. The effect of currency translation increased Operating Income by approximately $5 million.

	Operating Income				Adjusted Operating Income (AOI)
	Q2 ’26	Q2 ’25	Change (%)		Q2 ’26	Q2 ’25	Change (%)	Constant Currency Change (%)
FSS United States	$193M	$152M	27%		$223M	$176M	27%	27%
FSS International	61	52	19%		69	58	19%	12%
Corporate	(34)	(29)	(18)%		(34)	(29)	(18)%	(18)%
Total Company	$220M	$174M	26%		$258M	$205M	26%	24%
May not total due to rounding

• FSS United States increased from accelerated revenue levels, enhanced technology driving additional productivity gains, supply chain efficiencies, and effective above-unit cost management. The calendar shift favorably affected Operating Income and AOI growth by an estimated 16% and 13%, respectively.

• FSS International grew due to higher base business and net new business along with strengthened supply chain economics, which more than offset some in-country investments during the quarter to support significant growth. Operating Income on a GAAP basis included the favorable effect of currency translation.

• Corporate expenses experienced higher share-based compensation.

CASH FLOW AND CAPITAL STRUCTURE

Aramark reported a higher cash inflow in the second quarter compared to the prior year period, associated with stronger earnings and favorable working capital. Net cash provided by operating activities in the quarter increased 56% to $400 million, and Free Cash Flow grew 116% to $305 million.

In the second quarter, the Company proactively repaid approximately $55 million of Term Loan B due June 2030 and repurchased approximately $25 million of its common stock. Aramark has repurchased more than 5 million of its shares for an aggregate purchase price of approximately $194 million since the inception of the Company’s share repurchase program.

Aramark’s capital allocation priorities remain unchanged: invest in the business to drive and propel growth; repay debt on an ongoing basis, with leverage expected to be under 3.0x by the end of fiscal 2026; increase the dividend annually; and utilize excess cash generation to opportunistically repurchase Aramark stock.

At quarter-end, the Company had more than $1.4 billion in cash availability.

DIVIDEND DECLARATION

Aramark’s Board of Directors approved a quarterly dividend of $0.12 per share of common stock, as announced on May 6, 2026. The dividend will be payable on June 3, 2026, to stockholders of record at the close of business on May 20, 2026.

BUSINESS UPDATE

In the second quarter, Aramark delivered significant year-over-year growth in both the top and bottom line, reflecting continued momentum across the organization. The business trends remain strong heading into the second half of the fiscal year, including 1) a client retention rate exceeding 98% across the Company; 2) sustained revenue growth in FSS United States and FSS International from broad-based net new business and ongoing base business expansion; 3) new client wins that have already reached a record $1 billion; and 4) Aramark’s entry into the hyperscale AI data center market.

The Company recently launched Aramark Nexus^™, a new platform delivering integrated hospitality and workforce support services for the hyperscale AI data center market and other large-scale, complex, and often remote operating environments. Aramark is uniquely positioned to deliver on these integrated set of capabilities, supported by proven expertise in operating remote environments and an established competitive advantage. Aramark expects this new suite of services to generate margins above the Company average and achieve attractive investment returns. The Company believes there is substantial growth potential in this area of the business, in addition to Aramark’s broader portfolio.

OUTLOOK

The Company provides its expectations for organic revenue growth, Adjusted Operating Income growth (constant currency), Adjusted Earnings per Share growth (constant currency), and Net Debt to Covenant Adjusted EBITDA (“Leverage Ratio”) on a non-GAAP basis, and does not provide a reconciliation of such forward-looking non-GAAP measures to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including adjustments that could be made for the effect of currency translation. The fiscal 2026 outlook reflects management’s current assumptions regarding numerous evolving factors that are difficult to accurately predict, including those discussed in the Risk Factors set forth in the Company’s filings with the United States Securities and Exchange Commission.

Based on Aramark’s strong performance in the first half of the fiscal year, the Company updated its Fiscal 2026 Outlook for Organic Revenue growth and reaffirmed expectations for AOI, Adjusted EPS, and Leverage Ratio.

Aramark continues to expect accelerated AOI and margin expansion this fiscal year, consistent with the Company’s expectations, capitalizing on its multiple operating levers while mobilizing a record level of new business openings.

Aramark’s newly awarded multi-year agreement with a top global hyperscaler is underway and service set to begin this fiscal year. This new business is not currently reflected in the Company’s Fiscal 2026 Outlook with updates to be provided as the client engagement launches, grows, and scales.

Aramark currently anticipates its full-year performance for Fiscal 2026 as follows:

Organic Revenue growth at the high end of the Company’s previously stated +7% to +9%; Adjusted Operating Income growth of +12% to +17%; Adjusted EPS growth of +20% to +25%; and Leverage Ratio under 3x

Note: All percentages above are on a constant currency basis

For easier comparison purposes, Fiscal 2025 Organic Revenue is on a 52-week basis

“We enter the second half of the fiscal year with confidence in our growth trajectory and our ability to capitalize on the significant opportunities immediately ahead,” Zillmer added. “Our teams continue to deliver outstanding performance, and we remain focused on building upon this momentum and driving the business to even greater levels of success.”

CONFERENCE CALL SCHEDULED

The Company has scheduled a conference call at 8:30 a.m. ET today to discuss its earnings and outlook. This call and related materials can be heard and reviewed, either live or on a delayed basis, on the Company’s website, www.aramark.com, on the investor relations page.

About Aramark

Aramark (NYSE: ARMK) proudly serves the world’s leading educational institutions, Fortune 500 companies, world champion sports teams, prominent healthcare providers, iconic destinations and cultural attractions, and numerous municipalities in 16 countries around the world with food and facilities management. Because of our hospitality culture, our employees strive to do great things for each other, our partners, our communities, and the planet. Learn more at www.aramark.com and connect with us on LinkedIn, Facebook, X, and Instagram.

Selected Operational and Financial Metrics

Adjusted Revenue (Organic)

Adjusted Revenue (Organic) represents revenue adjusted to eliminate the impact of currency translation.

Adjusted Operating Income

Adjusted Operating Income represents operating income adjusted to eliminate the impact of amortization of acquisition-related intangible assets; severance and other charges and other items impacting comparability.

Adjusted Operating Income (Constant Currency)

Adjusted Operating Income (Constant Currency) represents Adjusted Operating Income adjusted to eliminate the impact of currency translation.

Adjusted Net Income

Adjusted Net Income represents net income attributable to Aramark stockholders adjusted to eliminate the impact of amortization of acquisition-related intangible assets; severance and other charges; the effect of debt repricing and repayments on interest expense, net, and other items impacting comparability, less the tax impact of these adjustments. The tax effect for Adjusted Net Income for our United States earnings is calculated using a blended United States federal and state tax rate. The tax effect for Adjusted Net Income in jurisdictions outside the United States is calculated at the local country tax rate.

Adjusted Net Income (Constant Currency)

Adjusted Net Income (Constant Currency) represents Adjusted Net Income adjusted to eliminate the impact of currency translation.

Adjusted EPS

Adjusted EPS represents Adjusted Net Income divided by diluted weighted average shares outstanding.

Adjusted EPS (Constant Currency)

Adjusted EPS (Constant Currency) represents Adjusted EPS adjusted to eliminate the impact of currency translation.

Covenant Adjusted EBITDA

Covenant Adjusted EBITDA represents net income attributable to Aramark stockholders adjusted for interest expense, net; provision for income taxes; depreciation and amortization and certain other items as defined in our credit agreement required in calculating covenant ratios and debt compliance. We also use Net Debt for our ratio to Covenant Adjusted EBITDA, which is calculated as total long-term borrowings less cash and cash equivalents and short-term marketable securities.

Free Cash Flow

Free Cash Flow represents net cash used in operating activities less net purchases of property and equipment and other. Management believes that the presentation of free cash flow provides useful information to investors because it represents a measure of cash flow available for distribution among all the security holders of the Company.

We use Adjusted Revenue (Organic), Adjusted Operating Income (including on a constant currency basis), Adjusted Net Income (including on a constant currency basis), Adjusted EPS (including on a constant currency basis), Covenant Adjusted EBITDA and Free Cash Flow as supplemental measures of our operating profitability and to control our cash operating costs. We believe these financial measures are useful to investors because they enable better comparisons of our historical results and allow our investors to evaluate our performance based on the same metrics that we use to evaluate our performance and trends in our results. These financial metrics are not measurements of financial performance under generally accepted accounting principles, or GAAP. Our presentation of these metrics has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. You should not consider these measures as alternatives to revenue, operating income, net income, earnings per share or net cash used in operating activities, determined in accordance with GAAP. Adjusted Revenue (Organic), Adjusted Operating Income, Adjusted Net Income, Adjusted EPS, Covenant Adjusted EBITDA and Free Cash Flow as presented by us may not be comparable to other similarly titled measures of other companies because not all companies use identical calculations.

Explanatory Notes to the Non-GAAP Schedules

Amortization of Acquisition-Related Intangible Assets – adjustments to eliminate the impact of amortization expense recognized on acquisition-related intangible assets.

Severance and Other Charges – adjustments to eliminate severance expenses in the applicable period ($5.5 million for both the second quarter and year-to-date 2026).

Gains, Losses and Settlements impacting comparability – adjustments to eliminate certain transactions that are not indicative of the Company’s ongoing operational performance, primarily for non-cash charges for the impairment of certain assets related to a business held-for-sale ($6.1 million for year-to-date 2026), multiemployer pension plan withdrawal charge ($5.6 million for year-to-date 2026), legal charges related to an antitrust review ($1.3 million for year-to-date 2026), charges related to hyperinflation in Argentina ($0.9 million gain for the second quarter of 2026, $0.4 million gain for year-to-date 2026, $0.6 million loss for the second quarter of 2025 and $1.3 million loss for year-to-date 2025) and a charge for contingent consideration liabilities related to acquisition earn outs ($11.1 million for year-to-date 2025).

Effect of Debt Repayments and Refinancings on Interest Expense, net – adjustments to eliminate expenses associated with the refinancings by the Company in the applicable period such as payment of third party costs ($0.7 million for year-to-date 2026 and $5.8 million for both the second quarter and year-to-date 2025) and non-cash charges for the write-off of unamortized debt issuance costs and discounts ($0.4 million for year-to-date 2026 and $2.5 million for both the second quarter and year-to-date 2025).

Tax Impact of Adjustments to Adjusted Net Income – adjustments to eliminate the net tax impact of the adjustments to Adjusted Net Income calculated based on a blended United States federal and state tax rate for United States adjustments and the local country tax rate for adjustments in jurisdictions outside the United States. The adjustments also reverse the valuation allowance recorded based on the Company’s ability to utilize foreign tax credits ($3.4 million for year-to-date 2026). Additionally, the adjustments reverse the release of a valuation allowance recorded at a foreign subsidiary ($8.6 million benefit for both the second quarter and year-to-date 2025) and eliminates the impact of the state tax treatment related to the sale of a minority interest ($4.4 million charge for both the second quarter and year-to-date 2025) and the tax related impact of the Company’s spin-off of the Uniform segment, including non-deductible transaction costs ($3.6 million charge for both the second quarter and year-to-date 2025).

Effect of Currency Translation – adjustments to eliminate the impact that fluctuations in currency translation rates had on the comparative results by presenting the periods on a constant currency basis. Assumes constant foreign currency exchange rates based on the rates in effect for the prior year period being used in translation for the comparable current year period.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect our current expectations as to future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. These statements include, but are not limited to, statements under the heading “Business Update,” “Outlook,” and those related to our expectations regarding the performance of our business, our financial results, our operations, our liquidity and capital resources, the conditions in our industry and our growth strategy. In some cases, forward-looking statements can be identified by words such as “outlook,” “aim,” “anticipate,” “have confidence,” “estimate,” “expect,” “will be,” “will continue,” “will likely result,” “project,” “intend,” “plan,” “believe,” “see,” “look to” and other words and terms of similar meaning or the negative versions of such words. These forward-looking statements are subject to risks and uncertainties that may change at any time, and actual results or outcomes may differ materially from those that we expected.

Some of the factors that we believe could affect or continue to affect our results include without limitation: unfavorable economic conditions; natural disasters, global calamities, climate change, pandemics, energy shortages, sports strikes and other adverse incidents; geopolitical events including the conflict in the Middle East, global supply chain disruptions, inflation, volatility and disruption of global financial markets; the impact of the United States’ and other countries’ trade policies including the implementation of tariffs; the failure to retain current clients, renew existing client contracts and obtain new client contracts; a determination by clients to reduce their outsourcing or use of preferred vendors; competition in our industries; increased operating costs and obstacles to cost recovery due to the pricing and cancellation terms of our food and support services contracts; currency risks and other risks associated with international operations, including compliance with a broad range of laws and regulations, including the United States Foreign Corrupt Practices Act; risks associated with suppliers from whom our products are sourced; disruptions to our relationship with our distribution partners; the contract intensive nature of our business, which may lead to client disputes; the inability to hire and retain key or sufficiently qualified personnel or increases in labor costs; our expansion strategy and our ability to successfully integrate the businesses we acquire and costs and timing related thereto; continued or further unionization of our workforce; liability resulting from our participation in multiemployer defined benefit pension plans; laws and governmental regulations including those relating to food and beverages, the environment, wage and hour and government contracting; liability associated with noncompliance with applicable law or other governmental regulations; new interpretations of or changes in the enforcement of the government regulatory framework; increases or changes in income tax rates or tax-related laws; potential liabilities, increased costs, reputational harm, and other adverse effects based on our commitments and stakeholder expectations relating to environmental, social and governance considerations; the failure to maintain food safety throughout our supply chain, food-borne illness concerns and claims of illness or injury; a cybersecurity incident or other disruptions in the availability of our computer systems or privacy breaches; the use of artificial intelligence technologies within our business processes; our leverage; variable rate indebtedness that subjects us to interest rate risk; the inability to generate sufficient cash to service all of our indebtedness; debt agreements that limit our flexibility in operating our business; risks associated with the completed spin-off of Aramark Uniform and Career Apparel (“Uniform”) as an independent publicly traded company to our stockholders; and other factors set forth under the headings “Part I, Item 1A Risk Factors,” “Part I, Item 3 Legal Proceedings” and “Part II, Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other sections of our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the “SEC”) on November 25, 2025 as such factors may be updated from time to time in our other periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov and which may be obtained by contacting Aramark’s investor relations department via its website at www.aramark.com. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and in our other filings with the SEC. As a result of these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements included herein or that may be made elsewhere from time to time by, or on behalf of, us. Forward-looking statements speak only as of the date made. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, changes in our expectations, or otherwise, except as required by law.

ARAMARK AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In Thousands, Except Per Share Amounts)
		Three Months Ended
		April 3, 2026			March 28, 2025
Revenue		$	4,907,342		$	4,279,298
Costs and Expenses:
Cost of services provided (exclusive of depreciation and amortization)			4,480,948			3,919,653
Depreciation and amortization			132,160			117,059
Selling and general corporate expenses			74,485			68,411
Total costs and expenses			4,687,593			4,105,123
Operating income			219,749			174,175
Interest Expense, net			82,241			89,704
Income Before Income Taxes			137,508			84,471
Provision for Income Taxes			35,368			22,498
Net income			102,140			61,973
Less: Net income attributable to noncontrolling interests			190			119
Net income attributable to Aramark stockholders		$	101,950		$	61,854
Earnings per share attributable to Aramark stockholders:
Basic		$	0.39		$	0.23
Diluted		$	0.38		$	0.23
Weighted Average Shares Outstanding:
Basic			263,160			264,811
Diluted			266,390			267,420

ARAMARK AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In Thousands, Except Per Share Amounts)
		Six Months Ended
		April 3, 2026			March 28, 2025
Revenue		$	9,738,891		$	8,831,384
Costs and Expenses:
Cost of services provided (exclusive of depreciation and amortization)			8,896,321			8,070,885
Depreciation and amortization			258,114			230,263
Selling and general corporate expenses			147,158			138,797
Total costs and expenses			9,301,593			8,439,945
Operating income			437,298			391,439
Interest Expense, net			164,160			165,508
Income Before Income Taxes			273,138			225,931
Provision for Income Taxes			74,497			58,255
Net income			198,641			167,676
Less: Net income attributable to noncontrolling interests			530			203
Net income attributable to Aramark stockholders		$	198,111		$	167,473
Earnings per share attributable to Aramark stockholders:
Basic		$	0.75		$	0.63
Diluted		$	0.74		$	0.62
Weighted Average Shares Outstanding:
Basic			263,144			264,846
Diluted			266,382			268,076

ARAMARK AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In Thousands)
		April 3, 2026			October 3, 2025
Assets
Current Assets:
Cash and cash equivalents		$	475,722		$	639,095
Receivables			2,475,099			2,210,388
Inventories			453,325			418,766
Prepayments and other current assets			341,915			254,642
Total current assets			3,746,061			3,522,891
Property and Equipment, net			1,786,495			1,734,489
Goodwill			4,980,956			4,874,670
Other Intangible Assets			1,907,892			1,874,067
Operating Lease Right-of-use Assets			825,305			701,839
Other Assets			593,941			596,673
		$	13,840,650		$	13,304,629
Liabilities and Stockholders’ Equity
Current Liabilities:
Current maturities of long-term borrowings		$	33,853		$	31,543
Current operating lease liabilities			65,314			60,744
Accounts payable			1,246,368			1,522,747
Accrued expenses and other current liabilities			1,744,183			1,931,688
Total current liabilities			3,089,718			3,546,722
Long-Term Borrowings			6,056,336			5,374,394
Noncurrent Operating Lease Liabilities			266,806			255,305
Deferred Income Taxes and Other Noncurrent Liabilities			1,085,590			966,019
Redeemable Noncontrolling Interests			61,871			14,130
Total Stockholders’ Equity			3,280,329			3,148,059
		$	13,840,650		$	13,304,629

ARAMARK AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In Thousands)
	Six Months Ended
	April 3, 2026				March 28, 2025
Cash flows from operating activities:
Net income	$	198,641			$	167,676
Adjustments to reconcile Net income to Net cash used in operating activities:
Depreciation and amortization		258,114				230,263
Asset write-downs		6,058				—
Increase in contingent consideration liability		—				11,127
Deferred income taxes		37,430				2,931
Share-based compensation expense		34,793				30,296
Changes in operating assets and liabilities		(839,069	)			(724,340	)
Payments made to clients on contracts		(151,368	)			(86,850	)
Other operating activities		73,453				37,693
Net cash used in operating activities		(381,948	)			(331,204	)
Cash flows from investing activities:
Net purchases of property and equipment and other		(214,878	)			(232,486	)
Acquisitions, divestitures and other investing activities		(101,637	)			(249,984	)
Net cash used in investing activities		(316,515	)			(482,470	)
Cash flows from financing activities:
Net proceeds/payments of long-term borrowings		(83,443	)			414,590
Net change in Revolving Credit Facility		140,366				275,882
Net change in funding under the Receivables Facility		625,000				586,000
Payments of dividends		(63,068	)			(55,683	)
Proceeds from issuance of common stock		19,288				16,379
Repurchase of common stock		(66,322	)			(109,283	)
Payments for contingent considerations		(33,697	)			(10,505	)
Other financing activities		(5,677	)			(50,816	)
Net cash provided by financing activities		532,447				1,066,564
Effect of foreign exchange rates on cash and cash equivalents and restricted cash		(335	)			(11,497	)
(Decrease) Increase in cash and cash equivalents and restricted cash		(166,351	)			241,393
Cash and cash equivalents and restricted cash, beginning of period		707,144				732,613
Cash and cash equivalents and restricted cash, end of period	$	540,793			$	974,006
Balance Sheet classification	April 3, 2026				March 28, 2025
Cash and cash equivalents	$	475,722			$	920,455
Restricted cash in Prepayments and other current assets		65,071				53,551
Total cash and cash equivalents and restricted cash	$	540,793			$	974,006

ARAMARK AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
ADJUSTED CONSOLIDATED OPERATING INCOME MARGIN
(Unaudited)
(In thousands)
		Three Months Ended
		April 3, 2026
		FSS United States				FSS International				Corporate				Aramark and Subsidiaries
Revenue (as reported)		$	3,430,268			$	1,477,074							$	4,907,342
Operating Income (as reported)		$	192,620			$	61,408			$	(34,279	)		$	219,749
Operating Income Margin (as reported)			5.6	%			4.2	%							4.5	%
Revenue (as reported)		$	3,430,268			$	1,477,074							$	4,907,342
Effect of Currency Translation			(1,963	)			(99,098	)							(101,061	)
Adjusted Revenue (Organic)		$	3,428,305			$	1,377,976							$	4,806,281
Revenue Growth (as reported)			12.2	%			20.8	%							14.7	%
Adjusted Revenue Growth (Organic)			12.2	%			12.7	%							12.3	%
Operating Income (as reported)		$	192,620			$	61,408			$	(34,279	)		$	219,749
Amortization of Acquisition-Related Intangible Assets			25,114				8,244				—				33,358
Severance and Other Charges			5,512				—				—				5,512
Gains, Losses and Settlements impacting comparability			—				(916	)			—				(916	)
Adjusted Operating Income		$	223,246			$	68,736			$	(34,279	)		$	257,703
Effect of Currency Translation			(536	)			(3,978	)			—				(4,514	)
Adjusted Operating Income (Constant Currency)		$	222,710			$	64,758			$	(34,279	)		$	253,189
Operating Income Growth (as reported)			27.0	%			19.1	%			(17.9	)%			26.2	%
Adjusted Operating Income Growth			26.9	%			18.5	%			(17.9	)%			25.8	%
Adjusted Operating Income Growth (Constant Currency)			26.6	%			11.6	%			(17.9	)%			23.6	%
Adjusted Operating Income Margin			6.5	%			4.7	%							5.3	%
Adjusted Operating Income Margin (Constant Currency)			6.5	%			4.7	%							5.3	%
		Three Months Ended
		March 28, 2025
		FSS United States				FSS International				Corporate				Aramark and Subsidiaries
Revenue (as reported)		$	3,056,338			$	1,222,960							$	4,279,298
Operating Income (as reported)		$	151,686			$	51,553			$	(29,063	)		$	174,176
Amortization of Acquisition-Related Intangible Assets			24,195				5,827				—				30,022
Gains, Losses and Settlements impacting comparability			—				622				—				622
Adjusted Operating Income		$	175,881			$	58,002			$	(29,063	)		$	204,820
Operating Income Margin (as reported)			5.0	%			4.2	%							4.1	%
Adjusted Operating Income Margin			5.8	%			4.7	%							4.8	%

ARAMARK AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
ADJUSTED CONSOLIDATED OPERATING INCOME MARGIN
(Unaudited)
(In thousands)
		Six Months Ended
		April 3, 2026
		FSS United States				FSS International				Corporate				Aramark and Subsidiaries
Revenue (as reported)		$	6,792,374			$	2,946,517			$	—			$	9,738,891
Operating Income (as reported)		$	381,368			$	121,198			$	(65,268	)		$	437,298
Operating Income Margin (as reported)			5.6	%			4.1	%							4.5	%
Revenue (as reported)		$	6,792,374			$	2,946,517							$	9,738,891
Effect of Currency Translation			(2,035	)			(150,401	)							(152,436	)
Adjusted Revenue (Organic)		$	6,790,339			$	2,796,116							$	9,586,455
Revenue Growth (as reported)			6.8	%			19.1	%							10.3	%
Adjusted Revenue Growth (Organic)			6.8	%			13.0	%							8.5	%
Operating Income (as reported)		$	381,368			$	121,198			$	(65,268	)		$	437,298
Amortization of Acquisition-Related Intangible Assets			50,276				15,083				—				65,359
Severance and Other Charges			5,512				—				—				5,512
Gains, Losses and Settlements impacting comparability			11,608				915				—				12,523
Adjusted Operating Income		$	448,764			$	137,196			$	(65,268	)		$	520,692
Effect of Currency Translation			(533	)			(6,106	)			—				(6,639	)
Adjusted Operating Income (Constant Currency)		$	448,231			$	131,090			$	(65,268	)		$	514,053
Operating Income Growth (as reported)			10.4	%			15.2	%			(10.2	)%			11.7	%
Adjusted Operating Income Growth			10.9	%			17.3	%			(10.2	)%			12.6	%
Adjusted Operating Income Growth (Constant Currency)			10.8	%			12.0	%			(10.2	)%			11.2	%
Adjusted Operating Income Margin			6.6	%			4.7	%							5.3	%
Adjusted Operating Income Margin (Constant Currency)			6.6	%			4.7	%							5.4	%
		Six Months Ended
		March 28, 2025
		FSS United States				FSS International				Corporate				Aramark and Subsidiaries
Revenue (as reported)		$	6,357,354			$	2,474,030							$	8,831,384
Operating Income (as reported)		$	345,404			$	105,238			$	(59,203	)		$	391,439
Amortization of Acquisition-Related Intangible Assets			48,054				10,452				—				58,506
Gains, Losses and Settlements impacting comparability			11,127				1,315				—				12,442
Adjusted Operating Income		$	404,585			$	117,005			$	(59,203	)		$	462,387
Operating Income Margin (as reported)			5.4	%			4.3	%							4.4	%
Adjusted Operating Income Margin			6.4	%			4.7	%							5.2	%

ARAMARK AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
ADJUSTED NET INCOME & ADJUSTED EARNINGS PER SHARE
(Unaudited)
(In thousands, except per share amounts)
			Three Months Ended								Six Months Ended
			April 3, 2026				March 28, 2025				April 3, 2026				March 28, 2025
Net Income Attributable to Aramark Stockholders (as reported)			$	101,950			$	61,854			$	198,111			$	167,473
	Adjustment:
	Amortization of Acquisition-Related Intangible Assets			33,358				30,022				65,359				58,506
	Severance and Other Charges			5,512				—				5,512				—
	Gains, Losses and Settlements impacting comparability			(916	)			622				12,523				12,442
	Effect of Debt Repricing and Repayments on Interest Expense, net			—				8,326				1,121				8,326
	Tax Impact of Adjustments to Adjusted Net Income			(9,058	)			(9,030	)			(16,226	)			(18,019	)
Adjusted Net Income			$	130,846			$	91,794			$	266,400			$	228,728
	Effect of Currency Translation, net of Tax			(2,980	)			—				(3,851	)			—
Adjusted Net Income (Constant Currency)			$	127,866			$	91,794			$	262,549			$	228,728
Earnings Per Share (as reported)
	Net Income Attributable to Aramark Stockholders (as reported)		$	101,950			$	61,854			$	198,111			$	167,473
	Diluted Weighted Average Shares Outstanding			266,390				267,420				266,382				268,076
			$	0.38			$	0.23			$	0.74			$	0.62
	Earnings Per Share Growth (as reported) %			65.5	%							19.0	%
Adjusted Earnings Per Share
	Adjusted Net Income		$	130,846			$	91,794			$	266,400			$	228,728
	Diluted Weighted Average Shares Outstanding			266,390				267,420				266,382				268,076
			$	0.49			$	0.34			$	1.00			$	0.85
	Adjusted Earnings Per Share Growth %			43.1	%							17.2	%
Adjusted Earnings Per Share (Constant Currency)
	Adjusted Net Income (Constant Currency)		$	127,866			$	91,794			$	262,549			$	228,728
	Diluted Weighted Average Shares Outstanding			266,390				267,420				266,382				268,076
			$	0.48			$	0.34			$	0.99			$	0.85
	Adjusted Earnings Per Share Growth (Constant Currency) %			39.8	%							15.5	%

ARAMARK AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
NET DEBT TO COVENANT ADJUSTED EBITDA
(Unaudited)
(In thousands)
			Twelve Months Ended
			April 3, 2026			March 28, 2025
Net Income Attributable to Aramark Stockholders (as reported)			$	357,032		$	348,010
	Interest Expense, net			340,577			331,285
	Provision for Income Taxes			119,828			117,649
	Depreciation and Amortization			504,196			451,148
	Share-based compensation expense(1)			62,695			63,062
	Unusual or non-recurring losses and (gains)(2)			25,523			(25,071	)
	Pro forma EBITDA for certain transactions(3)			36,604			28,502
	Other(4)(5)			127,504			95,335
Covenant Adjusted EBITDA			$	1,573,959		$	1,409,920
Net Debt to Covenant Adjusted EBITDA
	Total Long-Term Borrowings		$	6,090,189		$	6,532,881
	Less: Cash and cash equivalents and short-term marketable securities(6)			475,722			963,721
	Net Debt		$	5,614,467		$	5,569,160
	Covenant Adjusted EBITDA		$	1,573,959		$	1,409,920
	Net Debt/Covenant Adjusted EBITDA			3.6			3.9
(1) Represents share-based compensation expense of equity awards resulting from the application of accounting for stock options, restricted stock units, performance stock units and deferred stock unit awards.
(2) The twelve months ended April 3, 2026 represents a fiscal 2025 non-cash charge for the impairment on an equity investment ($19.5 million) and a fiscal 2026 non-cash charge for the impairment of certain assets related to a business held-for-sale ($6.1 million). The twelve months ended March 28, 2025 represents a fiscal 2024 gain from the sale of the Company’s remaining equity investment in the San Antonio Spurs NBA franchise ($25.1 million).
(3) Represents the annualizing of net EBITDA from certain acquisitions made during the period and, for purposes of the Credit Agreement, the net benefit from cost savings initiatives ($16.3 million for the twelve months ended April 3, 2026).
(4) “Other” for the twelve months ended April 3, 2026 includes adjustments to remove the impact attributable to the adoption of certain accounting standards that are made to the calculation in accordance with the Credit Agreement and indentures ($56.4 million), severance charges ($41.9 million), non-cash charges for the impairments of assets ($8.9 million), multiemployer pension plan withdrawal charge ($5.6 million), merger and integration charges ($4.9 million), the impact of hyperinflation in Argentina ($4.0 million), legal charges related to an antitrust review ($3.8 million) and other miscellaneous expenses.
(5) “Other” for the twelve months ended March 28, 2025 includes adjustments to remove the impact attributable to the adoption of certain accounting standards that are made to the calculation in accordance with the Credit Agreement and indentures ($52.8 million), non-cash adjustments to inventory based on expected usage ($18.2 million), charges related to a ruling on a foreign tax matter ($6.8 million), severance charges ($6.7 million), non-cash charges related to the impairment of a trade name ($3.3 million), contingent consideration expense related to acquisition earn outs, net of reversals ($2.4 million), the impact of hyperinflation in Argentina ($1.9 million) and other miscellaneous expenses.
(6) Short-term marketable securities represent held-to-maturity debt securities with original maturities greater than three months, which are maturing within one year and will convert back to cash. Short-term marketable securities are included in “Prepayments and other current assets” on the Condensed Consolidated Balance Sheets.

ARAMARK AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
FREE CASH FLOW
(Unaudited)
(In thousands)
	Six Months Ended				Three Months Ended				Three Months Ended
	April 3, 2026				January 2, 2026				April 3, 2026
Net cash (used in) provided by operating activities	$	(381,948	)		$	(782,200	)		$	400,252
Net purchases of property and equipment and other		(214,878	)			(120,033	)			(94,845	)
Free Cash Flow	$	(596,826	)		$	(902,233	)		$	305,407
	Six Months Ended				Three Months Ended				Three Months Ended
	March 28, 2025				December 27, 2024				March 28, 2025
Net cash (used in) provided by operating activities	$	(331,204	)		$	(587,152	)		$	255,948
Net purchases of property and equipment and other		(232,486	)			(117,788	)			(114,698	)
Free Cash Flow	$	(563,690	)		$	(704,940	)		$	141,250
	Six Months Ended				Three Months Ended				Three Months Ended
	Change				Change				Change
Net cash (used in) provided by operating activities	$	(50,744	)		$	(195,048	)		$	144,304
Net purchases of property and equipment and other		17,608				(2,245	)			19,853
Free Cash Flow	$	(33,136	)		$	(197,293	)		$	164,157

 

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