Accelevation Holdings Corp. Reports Strong Third Quarter 2026 with Revenue Growth of 66%, Bookings Growth of over 350%, and Robust Cash Generation
Sentiment and the balance of points
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Rhea-AI Summary
Accelevation (NASDAQ: ACCV) reported third-quarter 2026 revenue of $202.2 million, up 65.9% year over year, while net income declined. Net income fell 76.9% to $3.2 million, with a 1.6% margin versus 11.2% a year earlier. Adjusted EBITDA, a non-GAAP earnings measure, rose 30.8% to $37.7 million, but its margin fell to 18.7% from 23.7%. Bookings increased 364% to $768.9 million, and backlog reached $1.7 billion, up 329% year over year and 51.0% sequentially. Operating cash flow was $62.5 million versus a $0.6 million outflow.
The company introduced full-year revenue guidance of $905–$915 million and adjusted EBITDA guidance of $155–$165 million. After quarter-end, its IPO generated approximately $170.6 million in net proceeds, applied through Accelevation Holdings to repay debt. It also entered into $650 million of senior secured credit facilities with improved pricing; these transactions are not reflected in third-quarter results.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major pointNew credit facilities provide $650 million of capacity, including a $400 million revolver, with improved pricing. 45% of market cap
- Moderate pointThird-quarter revenue grew 65.9% year over year to $202.2 million.
- Moderate pointThird-quarter bookings increased 364% year over year to $768.9 million, with a 3.8x book-to-bill ratio.
- Moderate pointBacklog reached $1.7 billion, up 329% year over year and 51.0% from the prior quarter.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Full-year revenue guidance is $905–$915 million, representing 102%–104% year-over-year growth.
- Moderate pointThird-quarter operating cash flow reached $62.5 million, versus a $0.6 million outflow a year earlier.
- Moderate pointThird-quarter free cash flow reached $55.0 million, versus negative $3.3 million a year earlier.
- Moderate pointThird-quarter gross profit increased 40.4% year over year to $59.2 million.
- Moderate pointThird-quarter adjusted EBITDA increased 30.8% year over year to $37.7 million.
- Moderate pointNine-month adjusted net income rose 90.2% to $71.0 million; margin fell to 11.1% from 13.3%.
- Moderate pointCash increased to $108.512 million at September 30, 2026, from $16.267 million at December 31, 2025.
- Moderate pointIPO net proceeds of approximately $170.6 million were applied through Accelevation Holdings to repay outstanding debt. 12% of market cap
10 minor points
- Minor point. Forward-looking: it has not happened yet and may not happen.Full-year adjusted EBITDA guidance is $155–$165 million, representing 71%–82% year-over-year growth.
- Minor pointThird-quarter operating income increased 0.7% year over year to $18.2 million.
- Minor pointNine-month revenue grew 128.0% year over year to $639.7 million.
- Minor pointNine-month gross profit increased 93.9% year over year to $175.3 million.
- Minor pointNine-month operating income increased 148.4% year over year to $53.5 million.
- Minor pointNine-month net income increased 355.5% to $22.5 million; margin rose to 3.5% from 1.8%.
- Minor pointNine-month adjusted EBITDA increased 90.6% year over year to $106.1 million.
- Minor pointNine-month operating cash flow reached $58.3 million, versus a $5.6 million outflow a year earlier.
- Minor pointNine-month free cash flow reached $39.2 million, versus negative $14.0 million a year earlier.
- Minor point. Forward-looking: it has not happened yet and may not happen.Accelevation plans continued investment in modular capabilities and expansion of its power product offering.
Negative
- Major pointLong-term debt, net, rose to $648.776 million at September 30, from $269.874 million at year-end 2025.
- Moderate pointThird-quarter net income fell 76.9% to $3.2 million; margin declined to 1.6% from 11.2%.
- Moderate pointThird-quarter adjusted net income fell 7.0% to $20.9 million; margin declined to 10.3% from 18.5%.
- Moderate pointThird-quarter adjusted EBITDA margin declined to 18.7% from 23.7% a year earlier.
- Moderate pointThird-quarter selling, general and administrative expenses increased 68.5% year over year to $26.6 million.
- Moderate pointThird-quarter interest expense increased to $16.046 million from $5.673 million a year earlier.
- Moderate pointNine-month distributions and notes issued to members totaled $318.387 million, versus $16.905 million a year earlier. 22% of market cap
- Moderate pointIPO issuance of 10,000,000 new Class A shares at $18.00 each diluted existing holders.
6 minor points
- Minor pointNine-month adjusted EBITDA margin declined to 16.6% from 19.8% a year earlier.
- Minor pointNine-month selling, general and administrative expenses increased 83.1% year over year to $81.2 million.
- Minor pointNine-month interest expense increased to $31.323 million from $16.106 million a year earlier.
- Minor pointNine-month asset impairment charges were $2.128 million, versus none a year earlier.
- Minor pointTotal equity fell to $4.497 million at September 30, from $307.159 million at year-end 2025.
- Minor pointNew senior secured credit facilities include a $250 million Term Loan A.
News Explained
In its completed
Key Figures
- Revenue
- $202.2 million; +65.9% year over year
- Third quarter 2026
- Bookings
- $768.9 million; +364% year over year
- Third quarter 2026
- Backlog
- $1.7 billion; +329% year over year and +51.0% over prior quarter
- Third quarter 2026
- Net income
- $3.2 million
- Third quarter 2026; declined by $10.5 million
- Adjusted EBITDA
- $37.7 million; increased by $8.9 million
- Third quarter 2026; non-GAAP measure
- Operating cash flow
- $62.5 million
- Third quarter 2026, versus an outflow of $0.6 million in the prior year
- 2026 revenue guidance
- $905-$915 million
- Full-year 2026 outlook
- 2026 Adjusted EBITDA guidance
- $155-$165 million
- Full-year 2026 outlook; non-GAAP measure
Historical Context
-
Earlier announcement set out the $400 million revolver, $250 million term loan and improved pricing.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
book-to-bill ratio financial
senior secured credit agreement financial
non-gaap financial measures financial
revolving credit facility financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Third Quarter 2026 Business Highlights
- Revenue grew
65.9% year over year to$202.2 million . - Bookings of
$768.9 million , an increase of364% year over year. - Backlog of
$1.7 billion , an increase of329% and51.0% over prior year and prior quarter, respectively. - Book-to-bill ratio of 3.8x.
- Net income was
$3.2 million , a decline of$10.5 million ; net income margin was1.6% . - Adjusted net income* was
$20.9 million , a decline of7.0% . - Adjusted EBITDA* increased by
$8.9 million to$37.7 million ; Adjusted EBITDA margin* was18.7% . - Operating cash flow increased to
$62.5 million from an outflow of$0.6 million in the prior year. - Subsequent to quarter end, the Company entered into a new
$650 million senior secured credit agreement with significant pricing improvement.
Full Year 2026 Guidance**
- Revenue in the range of
$905 -$915 million , representing103% year-over-year growth at the midpoint. - Adjusted EBITDA** of
$155 -$165 million , representing76% year-over-year growth at the midpoint.
*Amounts are non-GAAP financial measures. See the schedules below for a discussion of non-GAAP financial metrics including a reconciliation to the most directly comparable GAAP measure.
**The Company has not provided a reconciliation of Adjusted EBITDA guidance to net income, the most directly comparable GAAP measure, because certain items that are excluded from the non-GAAP financial measure, such as depreciation expense and other expenses, cannot be reasonably predicted or estimated at this time without unreasonable effort. Such items could have a material impact on reported results.
MIAMISBURG, Ohio, Nov. 12, 2026 (GLOBE NEWSWIRE) -- Accelevation, Inc. (NASDAQ: ACCV) ("Accelevation" or the "Company"), a leading designer, manufacturer and installer of customized structural, electrical and mechanical systems for mission-critical infrastructure, reported financial results for the third quarter ended September 30, 2026.
Management Commentary
“At Accelevation, we design, manufacture, and install mission-critical infrastructure for customers who rely on our speed and certainty of delivery, and our third quarter results reflect the strength of our operating model and underlying markets,” said Michael Rubiera, Co-Founder and Chief Executive Officer of Accelevation. "We are pleased with our first reported quarter as a public company. Our end markets are accelerating, demand for our products is robust, and our ability to deliver customized solutions at scale for our customers is driving strong market share gains and growth in our business. Our backlog, order pace, and focus on productivity position us well to deliver strong results in the fourth quarter and beyond.”
“Our performance in the third quarter demonstrated the benefits of several strategic decisions we made previously to position Accelevation for where the industry is headed,” Michael Rubiera continued. “Our market is accelerating and we are seeing a shift toward modular, factory-built infrastructure. Based upon the strong demand from our customers, we continue to make investments in scaling our modular capabilities while also broadening our power product offering. We are expanding our addressable market through product innovation, diversifying our customer base, and growing our business with existing blue-chip customers to drive sustained, profitable growth.”
“We delivered strong growth, profitability, and cash generation in the quarter,” said Ken Krause, Chief Financial Officer of Accelevation. “Revenue increased more than
“Following quarter end, we used the primary proceeds from our IPO to reduce debt and closed
“As we introduce full-year 2026 guidance today we are well positioned to continue delivering robust growth, an improving margin profile, and strong cash flow as we start the fourth quarter and look further out into 2027,” concluded Mr. Krause.
Three and Nine Months Ended Financial Highlights
| (in millions, except per share) | 3Q 2026 | 3Q 2025 | % Chg | 9M 2026 | 9M 2025 | % Chg | |||||||||||||||
| GAAP Results | |||||||||||||||||||||
| Revenues | $ | 202.2 | $ | 121.9 | 65.9 | % | $ | 639.7 | $ | 280.5 | 128.0 | % | |||||||||
| Gross profit | $ | 59.2 | $ | 42.1 | 40.4 | % | $ | 175.3 | $ | 90.4 | 93.9 | % | |||||||||
| Operating income | $ | 18.2 | $ | 18.1 | 0.7 | % | $ | 53.5 | $ | 21.5 | 148.4 | % | |||||||||
| Selling, general and administrative expenses ("SG&A") | $ | 26.6 | $ | 15.8 | 68.5 | % | $ | 81.2 | $ | 44.4 | 83.1 | % | |||||||||
| SG&A Margin | 10.9 | % | 12.0 | % | (116) bps | 10.1 | % | 12.4 | % | 175 bps | |||||||||||
| Net income | $ | 3.2 | $ | 13.6 | (76.9) % | $ | 22.5 | $ | 4.9 | 355.5 | % | ||||||||||
| Net income margin | 1.6 | % | 11.2 | % | (964) bps | 3.5 | % | 1.8 | % | 175 bps | |||||||||||
| Net cash from operating activities | $ | 62.5 | $ | (0.6 | ) | nm | $ | 58.3 | $ | (5.6 | ) | nm | |||||||||
| Non-GAAP Results and Key Metrics | |||||||||||||||||||||
| Adjusted SG&A(1) | $ | 22.0 | $ | 14.7 | 49.9 | % | $ | 64.5 | $ | 34.8 | 85.5 | % | |||||||||
| Adjusted SG&A Margin(1) | 10.9 | % | 12.0 | % | (116) bps | 10.1 | % | 12.4 | % | (231) bps | |||||||||||
| Adjusted EBITDA(1) | $ | 37.7 | $ | 28.9 | 30.8 | % | $ | 106.1 | $ | 55.7 | 90.6 | % | |||||||||
| Adjusted EBITDA margin(1) | 18.7 | % | 23.7 | % | (502) bps | 16.6 | % | 19.8 | % | (325) bps | |||||||||||
| Adjusted Net Income(1) | $ | 20.9 | $ | 22.5 | (7.0) % | $ | 71.0 | $ | 37.3 | 90.2 | % | ||||||||||
| Adjusted Net Income margin(1) | 10.3 | % | 18.5 | % | (811) bps | 11.1 | % | 13.3 | % | (221) bps | |||||||||||
| Free cash flow(1) | $ | 55.0 | $ | (3.3 | ) | nm | $ | 39.2 | $ | (14.0 | ) | nm | |||||||||
(1) Amounts are non-GAAP financial measures or key performance metrics. See the appendix to this release for a discussion of non-GAAP financial metrics including a reconciliation to the most directly comparable GAAP measure and definitions.
Financial Outlook for Fiscal Year 2026
| (in millions, except per share) | Outlook | YoY Growth |
| Revenues | ||
| Adjusted EBITDA** | ||
Guidance is based on information as of today, November 12, 2026, and may be impacted by factors outside the Company's control. See "Forward Looking Statements."
Initial Public Offering
On October 1, 2026, after the end of the third quarter, Accelevation completed its initial public offering of 30,000,000 shares of Class A common stock at a public offering price of
Accelevation received net proceeds of approximately
In connection with the initial public offering, Accelevation entered into new senior secured credit facilities consisting of a
Conference Call and Webcast
Accelevation will host a conference call on Friday, November 13, 2026 at 8:30 a.m. Eastern Time to discuss its third quarter results. A link to the webcast of the live conference call will be available on the Investor Relations section of the Company's website at https://investors.accelevation.com. A replay of the conference call will be available for one year following the webcast.
About Accelevation Holdings Corp.
Accelevation is a leading designer, manufacturer and installer of customized structural, electrical and mechanical systems for mission-critical infrastructure. Its vertically integrated model combines U.S.-based manufacturing and nationwide field service capabilities to move customers faster from design through deployment with innovative, factory-built solutions engineered for speed, scalability and certainty. Accelevation solves complex needs at scale while investing in its communities, growing the skilled trades and creating opportunities for people to build lasting careers and share in the value they create.
Forward-Looking Statements
This press release and the related conference call contain forward-looking statements that are subject to risks and uncertainties. Forward-looking statements give the Company’s current expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “will,” “should,” “can have,” “likely” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. Forward-looking statements include all statements that are not historical facts, including our guidance, the conversion of our backlog into revenue, demand in our end markets and for our products, increases in market share, our capabilities to satisfy demand, continued investment in our business, including capacity expansion and our modular and power product offerings, the diversification of our customer base and expansion of our addressable market, our estimated and projected costs, expenditures, cash flows, growth rates and margin improvements, our future leverage, the expected benefits from the entry into the new facilities, our plans and objectives for future operations and the execution of our growth strategy and long-term strategic priorities.
There is no assurance that any forward-looking statements will materialize. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected, including: a reduction in demand or slowdown in the growth of drivers of data center demand; changes in data center industry dynamics, including increased siting constraints or community opposition; negative publicity about us or our industry; our dependence on a limited number of large-scale data center customers; our dependence on a concentrated base of hyperscale and colocation customers; our backlog being subject to unexpected adjustments and cancellations; our ability to compete effectively on speed-to-capacity, on-time delivery, customization, integration and price against intense and increasing competition; our failure to anticipate and adapt to rapid changes in data center technologies and architectures; our failure to secure new contracts; our ability to identify, integrate and realize the expected benefits of acquisitions; limitations on our indemnification rights in acquisition agreements; the success of our cost management strategies, vertically integrated operating model and modular infrastructure platform; extended sales cycles and irregular customer ordering patterns; our exposure to cost overruns and schedule penalties under fixed-price or committed-schedule arrangements; our dependence on the continued service of our founders and key leaders and our ability to recruit and retain skilled engineers, technicians and electricians; our ability to scale operations rapidly, including investment in workforce development, operating infrastructure and cross-functional coordination; any equipment failure, capacity constraints, labor availability and safety incidents, including physical hazards inherent to our industry; shortages, quality issues, price increases, transportation disruptions or government trade actions affecting raw materials and components in our supply chain; our reliance on contractors and subcontractors to supplement our own capabilities and to conduct aspects of our business; an economic downturn, tighter financing conditions or pricing challenges; geopolitical developments, trade policy shifts and macroeconomic volatility, including commodity price volatility; seasonal variations in operations and demand that affect construction activity; business disruption, natural disasters, public health events or other catastrophic events; our failure to adequately protect our intellectual property and other proprietary rights; claims alleging infringement, misappropriation or violation of third-party intellectual property rights; our failure to obtain or maintain sufficient insurance at acceptable cost; changes in laws, regulations and standards applicable to our business; disruption in our customers’ markets from future AI-related legislation and regulation and the impact it may have on demand for our products and services; product defects, installation errors or performance shortfalls resulting in warranty claims, reputational harm and liability; potential legal proceedings and disputes arising from our operations; misconduct or noncompliance by employees or subcontractors; our ability to comply with environmental, health and safety laws in our manufacturing facilities and at customer sites; our indebtedness and financing needs and the limitations our existing Credit Agreement imposes, and any future credit agreements may impose, on us; our inability to remediate our material weaknesses, or our failure to develop and maintain effective internal control over financial reporting; cybersecurity incidents or data privacy breaches; risks and uncertainties related to the development and use of AI, which may present business, compliance and reputational risks; and other factors set forth in our filings with the U.S. Securities and Exchange Commission.
You are cautioned not to place undue reliance on forward-looking statements, which reflect expectations only as of the date of this press release and related conference call. Except as required by applicable law, the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.
Contacts
Investor Relations Contact:
Larry De Maria, CFA
ir@accelevation.com
+1 (937) 560-1133
Media Contact:
Chandler Martin
media@accelevation.com
+1 (937) 802-2931
APPENDIX: FINANCIAL STATEMENTS AND NON-GAAP RECONCILIATIONS
Condensed Consolidated Statements of Income (Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| (in thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||
| Revenue | $ | 202,224 | $ | 121,888 | $ | 639,675 | $ | 280,518 | |||||||
| Cost of goods sold | 143,063 | 79,755 | 464,364 | 190,091 | |||||||||||
| Gross profit | 59,161 | 42,133 | 175,311 | 90,427 | |||||||||||
| Operating expenses: | |||||||||||||||
| Selling, general and administrative expenses | 26,561 | 15,766 | 81,206 | 44,350 | |||||||||||
| Amortization of intangible assets | 13,765 | 8,040 | 31,136 | 23,800 | |||||||||||
| Related party expenses | 640 | 256 | 7,378 | 756 | |||||||||||
| Impairment on assets held for sale | — | — | 2,128 | — | |||||||||||
| Total operating expenses | 40,966 | 24,062 | 121,848 | 68,906 | |||||||||||
| Operating income | 18,195 | 18,071 | 53,463 | 21,521 | |||||||||||
| Non-operating income (expenses) | |||||||||||||||
| Interest income | 657 | 123 | 1,199 | 182 | |||||||||||
| Interest expense | (16,046 | ) | (5,673 | ) | (31,323 | ) | (16,106 | ) | |||||||
| Other income (expenses), net | 345 | 1,409 | 81 | (68 | ) | ||||||||||
| Total non-operating expense, net | (15,044 | ) | (4,141 | ) | (30,043 | ) | (15,992 | ) | |||||||
| Income before taxes | 3,151 | 13,930 | 23,420 | 5,529 | |||||||||||
| (Benefit) provision for income taxes | (2 | ) | 284 | 942 | 594 | ||||||||||
| Net income | 3,153 | 13,646 | 22,478 | 4,935 | |||||||||||
| Net income attributable to noncontrolling interest | 222 | — | 718 | — | |||||||||||
| Net income attributable to Accelevation LLC | 2,931 | 13,646 | 21,760 | 4,935 | |||||||||||
Condensed Consolidated Balance Sheets (Unaudited)
| (in thousands) | September 30, 2026 | December 31, 2025 | ||||
| ASSETS | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 108,512 | $ | 16,267 | ||
| Accounts receivable, net of allowance | 119,952 | 82,302 | ||||
| Contract assets | 96,741 | 52,816 | ||||
| Inventories | 66,991 | 45,285 | ||||
| Prepaid expenses and other current assets | 13,211 | 5,188 | ||||
| Assets held for sale | — | 8,802 | ||||
| Total current assets | 405,407 | 210,660 | ||||
| Property, plant and equipment, net | 48,994 | 32,942 | ||||
| Right-of-use assets - operating leases | 45,637 | 23,441 | ||||
| Goodwill | 186,400 | 186,400 | ||||
| Intangible assets, net | 237,072 | 268,208 | ||||
| Other long-term assets | 7,392 | 1,296 | ||||
| Total assets | 930,902 | 722,947 | ||||
| LIABILITIES AND MEMBERS' EQUITY | ||||||
| Current liabilities | ||||||
| Accounts payable | 77,597 | 68,283 | ||||
| Accrued expenses and other current liabilities | 29,027 | 16,139 | ||||
| Contract liabilities | 104,678 | 12,252 | ||||
| Related party payable | 365 | 7,944 | ||||
| Current maturities of long-term debt | 6,676 | 2,683 | ||||
| Current portion of operating lease liabilities | 5,710 | 2,815 | ||||
| Liabilities held for sale | — | 3,699 | ||||
| Total current liabilities | 224,053 | 113,815 | ||||
| Other liabilities | ||||||
| Long-term debt, net | 648,776 | 269,874 | ||||
| Operating lease liabilities, net | 41,782 | 21,794 | ||||
| Other long-term liabilities | 11,794 | 10,305 | ||||
| Total other liabilities | 702,352 | 301,973 | ||||
| Members' equity | ||||||
| Members' equity | 23,661 | 283,427 | ||||
| Members' notes receivable | (22,095 | ) | — | |||
| Retained earnings | 2,931 | 17,815 | ||||
| Total members' equity | 4,497 | 301,242 | ||||
| Noncontrolling interest | — | 5,917 | ||||
| Total equity | 4,497 | 307,159 | ||||
| Total liabilities and equity | $ | 930,902 | $ | 722,947 | ||
Condensed Consolidated Statements of Cash Flows (Unaudited)
| Nine Months Ended September 30, | |||||||
| (in thousands) | 2026 | 2025 | |||||
| OPERATING ACTIVITIES | |||||||
| Net income | $ | 22,478 | $ | 4,935 | |||
| Depreciation, amortization, and other noncash items | 50,581 | 34,501 | |||||
| Working capital and other operating activities | (14,794 | ) | (45,012 | ) | |||
| Net cash provided by (used in) operating activities | 58,265 | (5,576 | ) | ||||
| INVESTING ACTIVITIES | |||||||
| Purchases of property and equipment | (19,037 | ) | (8,413 | ) | |||
| Payments for purchases of businesses, net of cash acquired | — | (398,433 | ) | ||||
| Other investing activities | 1,643 | — | |||||
| Net cash used in investing activities | (17,394 | ) | (406,846 | ) | |||
| FINANCING ACTIVITIES | |||||||
| Net proceeds from debt, after debt issuance costs | 382,233 | 230,160 | |||||
| Distributions and notes issued to members | (318,387 | ) | (16,905 | ) | |||
| Other financing activities | (12,472 | ) | 214,405 | ||||
| Net cash provided by financing activities | 51,374 | 427,660 | |||||
| Change in cash and cash equivalents | 92,245 | 15,238 | |||||
Non-GAAP Financial Measures
Adjusted SG&A
Adjusted SG&A is calculated as SG&A plus or minus (i) equity-based compensation, (ii) sponsor fees and expenses, (iii) public company readiness costs, (iv) acquisition-related costs, (v) changes in the fair value of contingent consideration liabilities, and (vi) other non-recurring items. Adjusted SG&A Margin reflects Adjusted SG&A as a percentage of Revenue.
Among other limitations, Adjusted SG&A and Adjusted SG&A Margin do not reflect all cash expenditures, do not reflect certain recurring noncash charges, and do not reflect the impact of certain cash charges resulting from matters the Company considers not to be indicative of ongoing operations.
The Company presents Adjusted SG&A and Adjusted SG&A Margin because it believes the metrics assist investors and analysts in comparing performance across reporting periods on a consistent basis by excluding items that the Company does not believe are indicative of core operating performance. Management uses these metrics are used by management to compare SG&A expenses consistently over various periods.
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA is defined as net income (loss) adjusted for interest income and expense, provision for income taxes, depreciation and amortization expense, equity-based compensation expense, public company readiness costs, acquisition costs, sponsor fees and expenses, change in fair value of acquisition earnout and asset impairment, as well as certain non-recurring items, including payments to Olympus that ceased upon the IPO. Adjusted EBITDA Margin reflects Adjusted EBITDA as a percentage of Revenue.
Among other limitations, Adjusted EBITDA and Adjusted EBITDA Margin do not reflect the Company's cash expenditures, or future requirements, for capital expenditures or contractual commitments, non-cash charges for depreciation and amortization, and do not reflect the impact of certain cash charges resulting from matters the Company considers not to be indicative of ongoing operations such as interest expense. Adjusted EBITDA and Adjusted EBITDA Margin also do not reflect income tax expense or benefit.
The Company believes that Adjusted EBITDA and Adjusted EBITDA Margin are important metrics for management and investors as they (i) adjust for the impact of items that the Company does not believe are indicative of core operating results or the overall health of the Company and (ii) allow for consistent comparison of operating results over time. In addition, the Company uses Adjusted EBITDA and Adjusted EBITDA Margin in evaluating management’s performance when determining incentive compensation and to evaluate the effectiveness of its business strategies.
Adjusted Net Income and Adjusted Net Income Margin
Adjusted Net Income is calculated as net income (loss) plus or minus (i) amortization of intangibles, (ii) equity-based compensation, (iii) sponsor fees and expenses, (iv) public company readiness costs, (v) acquisition-related costs, (vi) changes in the fair value of contingent consideration liabilities, (vii) asset impairments, (viii) other non-recurring items, and (ix) tax impact of adjustments. Adjusted Net Income Margin reflects Adjusted Net Income as a percentage of Revenue.
Among other limitations, Adjusted Net Income and Adjusted Net Income Margin do not reflect all cash expenditures, or future requirements, for capital expenditures or contractual commitments, do not reflect certain recurring noncash charges, and do not reflect the impact of certain cash charges resulting from matters the Company considers not to be indicative of ongoing operations.
The Company presents Adjusted Net Income and Adjusted Net Income Margin because it believes the metrics assist investors and analysts in comparing performance across reporting periods on a consistent basis by excluding items that the Company does not believe are indicative of core operating performance. Adjusted Net Income and Adjusted Net Income Margin are used by management to evaluate the effectiveness of its business strategies.
Free Cash Flow
The Company defines Free Cash Flow as Net Cash Provided by Operating Activities reduced by Purchases of Property and Equipment. Management uses Free Cash Flow to provide insight into liquidity, cash-generating capability, as well as demonstrate its ability to fund future growth. Free Cash Flow should be considered in addition to, rather than as a substitute for, Net Cash Provided by Operating Activities as a measure of liquidity. Additionally, the Company's definition of Free Cash Flow is limited, in that it does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, management believes it is important to view Free Cash Flow as a measure that provides supplemental information to the consolidated statements of cash flows.
Reconciliation of SG&A to Adjusted SG&A
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| (in thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||
| Selling, general, and administrative costs | $ | 26,561 | $ | 15,766 | $ | 81,206 | $ | 44,350 | |||||||
| Less: | |||||||||||||||
| Equity-based compensation | 751 | 124 | 1,941 | 278 | |||||||||||
| Sponsor fees and expenses(1) | 260 | 256 | 774 | 756 | |||||||||||
| Public company readiness costs(2) | 3,907 | — | 12,535 | — | |||||||||||
| Strategic acquisition costs | — | 67 | — | 6,104 | |||||||||||
| Change in fair value of acquisition earnout | (560 | ) | 577 | 537 | 1,532 | ||||||||||
| Other(3) | 196 | 59 | 936 | 909 | |||||||||||
| Adjusted SG&A | $ | 22,007 | $ | 14,683 | $ | 64,483 | $ | 34,771 | |||||||
| Revenue | $ | 202,224 | $ | 121,888 | $ | 639,675 | $ | 280,518 | |||||||
| SG&A Margin | 13.1 | % | 12.9 | % | 12.7 | % | 15.8 | % | |||||||
| Adjusted SG&A Margin | 10.9 | % | 12.0 | % | 10.1 | % | 12.4 | % | |||||||
(1) Represents fees and expense reimbursements paid to the Company's sponsor, which will no longer be paid in future periods.
(2) Represents non-recurring professional service fees related to the IPO readiness included as Related Party Expenses and Selling, General and Administrative Expenses on the condensed consolidated income statements.
(3) Other for the year ended December 31, 2025 primarily includes disposals of fixed assets due to a one-time policy change in capitalization thresholds and abandonment of certain fixed assets. For the three and nine months ended September 30, 2026, Other includes loss on the sale of WMS and disposals of certain fixed assets.
Reconciliation of Net Income to Adjusted EBITDA*
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| (in thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||
| Net income (loss) | $ | 3,153 | $ | 13,646 | 22,478 | 4,935 | |||||||||
| Interest expense | 16,046 | 5,673 | 31,323 | 16,106 | |||||||||||
| Interest income | (657 | ) | (123 | ) | (1,199 | ) | (182 | ) | |||||||
| (Benefit) provision for income taxes | (2 | ) | 284 | 942 | 594 | ||||||||||
| Depreciation expense | 881 | 260 | 2,579 | 831 | |||||||||||
| Amortization of intangibles | 13,765 | 8,040 | 31,136 | 23,800 | |||||||||||
| Equity-based compensation | 751 | 124 | 1,941 | 278 | |||||||||||
| Acquisition costs | — | 67 | — | 6,104 | |||||||||||
| Sponsor fees and expenses(1) | 260 | 256 | 774 | 756 | |||||||||||
| Public company readiness costs(2) | 3,907 | — | 12,535 | — | |||||||||||
| Change in fair value of acquisition earnout | (560 | ) | 577 | 537 | 1,532 | ||||||||||
| Asset impairment | — | — | 2,128 | — | |||||||||||
| Other(3) | 196 | 59 | 936 | 909 | |||||||||||
| Adjusted EBITDA | $ | 37,740 | $ | 28,863 | $ | 106,110 | $ | 55,663 | |||||||
| Revenue | $ | 202,224 | $ | 121,888 | $ | 639,675 | $ | 280,518 | |||||||
| Net Income Margin | 1.6 | % | 11.2 | % | 3.5 | % | 1.8 | % | |||||||
| Adjusted EBITDA Margin | 18.7 | % | 23.7 | % | 16.6 | % | 19.8 | % | |||||||
(1) Represents fees and expense reimbursements paid to the Company's sponsor, which will no longer be paid in future periods.
(2) Represents non-recurring professional service fees related to the IPO included as Related Party Expenses and Selling, General and Administrative Expenses on the condensed consolidated income statements.
(3) Other for the year ended December 31, 2025 primarily includes disposals of fixed assets due to a one-time policy change in capitalization thresholds and abandonment of certain fixed assets. For the nine months ended September 30, 2026, Other includes loss on the sale of WMS and disposals of certain fixed assets.
Reconciliation of Net Income to Adjusted Net Income*
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| (in thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||
| Net income (loss) | $ | 3,153 | $ | 13,646 | 22,478 | 4,935 | |||||||||
| Amortization of intangibles | 13,765 | 8,040 | 31,136 | 23,800 | |||||||||||
| Equity-based compensation | 751 | 124 | 1,941 | 278 | |||||||||||
| Sponsor fees and expenses(1) | 260 | 256 | 774 | 756 | |||||||||||
| Public company readiness costs(2) | 3,907 | — | 12,535 | — | |||||||||||
| Acquisition costs | — | 67 | — | 6,104 | |||||||||||
| Change in fair value of acquisition earnout | (560 | ) | 577 | 537 | 1,532 | ||||||||||
| Asset impairment | — | — | 2,128 | — | |||||||||||
| Other(3) | 196 | 59 | 936 | 909 | |||||||||||
| Tax impact of adjustments | (550 | ) | (274 | ) | (1,500 | ) | (1,001 | ) | |||||||
| Adjusted Net income | $ | 20,922 | $ | 22,495 | $ | 70,965 | $ | 37,313 | |||||||
| Revenue | $ | 202,224 | $ | 121,888 | $ | 639,675 | $ | 280,518 | |||||||
| Net Income Margin | 1.6 | % | 11.2 | % | 3.5 | % | 1.8 | % | |||||||
| Adjusted Net Income Margin | 10.3 | % | 18.5 | % | 11.1 | % | 13.3 | % | |||||||
(1) Represents fees and expense reimbursements paid to the Company's sponsor, which will no longer be paid in future periods.
(2) Represents non-recurring professional service fees related to the IPO readiness included as Related Party Expenses and Selling, General and Administrative Expenses on the condensed consolidated income statements.
(3) Other for the year ended December 31, 2025 primarily includes disposals of fixed assets due to a one-time policy change in capitalization thresholds and abandonment of certain fixed assets. For the three and nine months ended September 30, 2026, Other includes loss on the sale of WMS and disposals of certain fixed assets.
Reconciliation of Net Cash from Operating Activities to Free Cash Flow*
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| (in thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||
| Net cash (used in) provided by operating activities | $ | 62,506 | $ | (645 | ) | $ | 58,265 | $ | (5,576 | ) | |||||
| Purchase of property and equipment | (7,500 | ) | (2,629 | ) | (19,037 | ) | (8,413 | ) | |||||||
| Free Cash Flow | $ | 55,006 | $ | (3,274 | ) | $ | 39,228 | $ | (13,989 | ) | |||||
Performance Metrics
The Company utilizes certain performance metrics (defined below) to provide an indication of trends in operating results, including future business, and to provide a useful indicator of the volume of our business over time. Measuring backlog, bookings, and book-to-bill ratio involves the use of judgments, and there are no independent standards or requirements governing the calculation of these metrics. These metrics may be impacted by, among other factors, the types of services and systems sold, contract duration, the pace of customer spending, actual volumes of services and systems delivered as compared to the volumes anticipated at the time of sale, and contract modifications over the lifetime of a contract. Information regarding these performance metrics is not comparable to, nor should it be substituted for, an analysis of reported revenues.
Backlog consists of the remaining unrecognized revenue on executed contracts and purchase orders, as well as letters of intent and notices to proceed with respect to purchase orders received in writing. The Company utilizes backlog to provide additional insights regarding trends in future revenue and market penetration.
Bookings is defined as the aggregate dollar value of executed customer contracts and purchase orders, as well as letters of intent and notices to proceed with respect to purchase orders received in writing, during a given period.
Book-to-bill ratio is defined as bookings divided by revenue for the applicable period.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How did Accelevation ACCV perform in the third quarter of 2026?
Accelevation generated $202.2 million in revenue, up 65.9% year over year, while net income fell 76.9% to $3.2 million. Adjusted EBITDA increased 30.8% to $37.7 million, but its margin declined to 18.7% from 23.7%. Operating cash flow reached $62.5 million, compared with a $0.6 million outflow a year earlier.
What is Accelevation ACCV's full-year 2026 guidance?
Accelevation expects $905–$915 million in revenue and $155–$165 million in adjusted EBITDA for 2026. Those ranges represent year-over-year growth of 102%–104% and 71%–82%, respectively.