Team, Inc. Reports First Quarter 2026 Results
Rhea-AI Summary
Team (NYSE:TISI) reported Q1 2026 revenue of $215.1 million, up 8.3% year over year, with gross margin of $50.2 million (23.3%). Net loss narrowed to $11.3 million, while Adjusted EBITDA rose to $7.7 million (3.6% margin).
2026 guidance targets revenue of $920–$945 million, gross margin of $240–$260 million and Adjusted EBITDA of $68–$73 million, implying mid‑point increases of about 4%, 8% and 16% versus 2025.
AI-generated analysis. Not financial advice.
Positive
- Q1 2026 revenue up 8.3% year over year to $215.1 million
- Adjusted EBITDA increased 45.2% to $7.7 million, 3.6% of revenue
- Net loss improved by $18.4 million to $11.3 million
- Adjusted SG&A reduced to 21.2% of revenue from 22.7%
- 2026 guidance implies ~4% revenue and ~16% Adjusted EBITDA growth vs 2025
- Total liquidity of $49.2 million at March 31, 2026
Negative
- Company still reported Q1 2026 net loss of $11.3 million
- Q1 2026 operating loss was $3.4 million despite revenue growth
- Net loss attributable to common shareholders was $14.2 million, or $3.12 per share
- Total debt increased to $306.5 million from $297.2 million at year-end 2025
- Mechanical Services segment remained in operating loss at $(1.5) million
Key Figures
Market Reality Check
Peers on Argus
TISI was down 5.57% while peers showed mixed moves: DLHC (-1.08%), WFCF (-11.92%), PMEC (+4.61%), SST (+8.28%), SPIR (+3.2%). Scanner peers showed two names down and one up, indicating broader but uneven sector dynamics.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 12 | Q4/FY 2025 earnings | Positive | +8.2% | Revenue and Adjusted EBITDA growth with reduced annual net loss. |
| Nov 12 | Q3 2025 earnings | Positive | -5.1% | Revenue and EBITDA growth plus equity financing and debt reduction. |
| Aug 12 | Q2 2025 earnings | Positive | +18.5% | Strong revenue growth and higher Adjusted EBITDA despite continued net loss. |
| May 12 | Q1 2025 earnings | Neutral | +4.1% | Flat revenue with sizable net loss but cost savings and growth guidance. |
| Mar 19 | Q4/FY 2024 earnings | Positive | +0.8% | Improved profitability and refinancing with flat annual revenues. |
Earnings releases have generally been received positively, with four of the last five earnings headlines followed by gains despite ongoing net losses and leverage.
Over the past year, TEAM has repeatedly reported revenue growth and improving Adjusted EBITDA, from Q4 2024 through full-year 2025. Earnings updates on May 12, 2025, Aug. 12, 2025, and Nov. 12, 2025 highlighted margin gains and cost savings, even as net losses persisted. The Q4 and full-year 2025 report on Mar. 12, 2026 showed higher revenue and EBITDA with still meaningful losses and leverage. Today’s Q1 2026 release continues that trajectory of gradual operational improvement against a leveraged balance sheet.
Historical Comparison
In the past year, TEAM’s earnings releases moved the stock an average of about 5.3%, with most events generating positive reactions despite ongoing net losses and leverage.
Earnings updates from late 2024 through Q4 2025 show steady revenue growth, rising Adjusted EBITDA, and narrowing net losses. The new Q1 2026 results and 2026 guidance extend this pattern of operational improvement while the balance sheet remains leveraged.
Regulatory & Risk Context
An S-3 shelf registration filed on Oct. 9, 2025 is in place but not yet effective, as indicated in the filing summary. It references prior securities agreements and confirms TEAM’s status as a smaller reporting company with associated reduced disclosure requirements.
Market Pulse Summary
This announcement highlights continued revenue growth to $215.1M, stronger gross margin of $50.2M, and a 45.2% increase in Adjusted EBITDA to $7.7M, alongside narrower but still significant net losses. 2026 guidance calls for revenue of $920M–$945M and Adjusted EBITDA of $68M–$73M. Investors should track execution on margin expansion, debt at $306.5M, liquidity of $49.2M, and how segment performance supports the full-year outlook.
Key Terms
adjusted ebitda financial
non-gaap financial measures financial
net debt financial
restricted cash financial
AI-generated analysis. Not financial advice.
SUGAR LAND, Texas, May 13, 2026 (GLOBE NEWSWIRE) -- Team, Inc. (NYSE: TISI) (“TEAM” or the “Company”), a global, leading provider of specialty industrial services offering customers access to a full suite of conventional, specialized, and proprietary inspection, heat-treating, and mechanical services, today reported its financial results for the quarter ended March 31, 2026. The Company also provided guidance for the full year 2026.
First Quarter 2026 Highlights:
- Grew revenue to
$215.1 million , up$16.4 million , or8.3% , over the first quarter of 2025. - Generated gross margin of
$50.2 million , up$2.9 million , or6.1% , over the first quarter of 2025. - Reported a net loss of
$11.3 million , an improvement of$18.4 million over the prior year period. - Increased Adjusted EBITDA1 to
$7.7 million (3.6% of consolidated revenue), up45.2% from$5.3 million (2.7% of consolidated revenue) in the 2025 first quarter. - Adjusted Selling, General and Administrative Expense1 improved to
21.2% of consolidated revenue compared to22.7% in prior year period. - Provided guidance for the full year 2026, which includes substantive increases at the midpoint of approximately
4% ,8% and16% in revenues, gross margin and Adjusted EBITDA1, respectively, over 2025 results.
1 See the accompanying reconciliation of non-GAAP financial measures at the end of this earnings release.
“We delivered a solid start to 2026, with first-quarter revenues rising
“In my first 100 days as CEO, I’ve been deeply impressed by the talent, technical expertise, and customer focus across the organization, and I’ve seen firsthand the value we deliver to our customers through best-in-class service, quality and safety. Building on the momentum we established in 2025, I am focused on accelerating that pace of improvement by sharpening our commercial execution, strengthening the team with targeted talent additions, and accelerating cost efficiency initiatives, and I will share more details around our go forward plan in the second quarter call. With a focus on gross margin improvement, we have already taken meaningful actions in the first quarter and see further opportunities in the second half of 2026. We expect these initiatives to further strengthen our cash flow and financial position,” commented Hill.
“Looking ahead, we expect a healthy second quarter, and anticipate stronger performance in the second half of the year, driven by continued strength in the U.S. coupled with further improvement in Canada and other international markets, along with further margin expansion across both segments. For the full year, we are guiding to revenue of
Financial Results
First quarter revenues reached
Selling, general and administrative expenses for the first quarter were
Operating loss was
Adjusted net loss, Adjusted EBIT, Adjusted EBITDA and Adjusted Selling, General and Administrative Expense are non-GAAP financial measures that exclude certain items that are not indicative of TEAM’s core operating activities. A reconciliation of these non-GAAP financial measures to the most comparable GAAP financial measures is at the end of this earnings release.
Segment Results
The following table illustrates the composition of the Company’s revenue and operating income (loss) by segment for the quarter ended March 31, 2026 and 2025 (in thousands):
| TEAM, INC. AND SUBSIDIARIES | ||||||||||||||
| SEGMENT INFORMATION | ||||||||||||||
| (unaudited, in thousands) | ||||||||||||||
| Three Months Ended March 31, | Favorable (Unfavorable) | |||||||||||||
| 2026 | 2025 | $ | % | |||||||||||
| Revenues1 | ||||||||||||||
| IHT | $ | 123,391 | $ | 113,621 | $ | 9,770 | 8.6 | % | ||||||
| MS | 91,665 | 85,034 | 6,631 | 7.8 | % | |||||||||
| $ | 215,056 | $ | 198,655 | $ | 16,401 | 8.3 | % | |||||||
| Operating income (loss)1 | ||||||||||||||
| IHT | $ | 10,917 | $ | 10,731 | $ | 186 | 1.7 | % | ||||||
| MS | (1,488 | ) | (3,149 | ) | 1,661 | 52.7 | % | |||||||
| Corporate and shared support services | (12,800 | ) | (13,585 | ) | 785 | 5.8 | % | |||||||
| $ | (3,371 | ) | $ | (6,003 | ) | $ | 2,632 | 43.8 | % | |||||
1 During the current period, Emission Control Services were reclassified from the MS segment to the IHT segment to better align with how management evaluates performance. Prior period segment information (revenues, and operating and depreciation expense) was recast to reflect this change, which did not impact the Company’s consolidated revenue or adjusted EBITDA. For the three months ended March 31, 2025, this resulted in a decrease of
Revenues. IHT revenues increased by
Operating income (loss). IHT’s first quarter 2026 operating income was
Balance Sheet and Liquidity
At March 31, 2026, the Company had
The Company’s total debt as of March 31, 2026 was
2026 Outlook
For fiscal year 2026, the Company has provided the following operating and cash flow guidance:
- Total Company Revenue of
$920 million to$945 million , an increase of approximately4% at the midpoint of guidance compared to 2025; - Gross Margin of between
$240 million and$260 million , an increase of approximately8% at the midpoint of guidance compared to 2025; - Adjusted EBITDA of between
$68 million and$73 million , an increase of approximately16% at the midpoint of guidance compared to 2025; - Capital expenditures of between
$13 million to$14 million .
Conference Call
As previously announced, the Company will hold a conference call to discuss its first quarter 2026 financial and operating results on Thursday, May 14, 2026, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time). Interested parties in the United States may participate toll-free by dialing (877) 270-2148. Interested parties internationally may dial (412) 902-6510. Participants should ask to join “TEAM, Inc. First Quarter 2026 Conference Call.” The Company will not host questions during the call. This call will also be webcast on TEAM’s website at www.teaminc.com. An audio replay will be available on the Company’s website following the call.
Non-GAAP Financial Measures
The non-GAAP measures in this earnings release are provided to enable investors, analysts and management to evaluate TEAM’s performance excluding the effects of certain items that management believes impact the comparability of operating results between reporting periods. These measures should be used in addition to, and not in lieu of, results prepared in conformity with generally accepted accounting principles (“GAAP”). A reconciliation of each of the non-GAAP financial measures to the most directly comparable historical GAAP financial measure is contained in the accompanying schedule for each of the fiscal periods indicated.
About Team, Inc.
Headquartered in Sugar Land, Texas, Team, Inc. (NYSE: TISI) is a global, leading provider of specialty industrial services offering customers access to a full suite of conventional, specialized, and proprietary inspection, heat-treating, and mechanical services. We deploy conventional to highly specialized inspection, condition assessment, maintenance, and repair services that result in greater safety, reliability, and operational efficiency for our customers’ most critical assets. Through locations in 13 countries, we unite the delivery of technological innovation with over a century of progressive, yet proven integrity and reliability management expertise to fuel a better tomorrow. For more information, please visit www.teaminc.com.
Certain forward-looking information contained herein is being provided in accordance with the provisions of the Private Securities Litigation Reform Act of 1995. We have made reasonable efforts to ensure that the information, assumptions, and beliefs upon which this forward-looking information is based are current, reasonable, and complete. However, such forward-looking statements involve estimates, assumptions, judgments, and uncertainties. They include but are not limited to statements regarding the Company’s financial and growth prospects and strategy, including the implementation of cost-saving measures. There are known and unknown factors that could cause actual results or outcomes to differ materially from those addressed in the forward-looking information. Although it is not possible to identify all of these factors, they include, among others: the Company’s ability to generate sufficient cash from operations, access its credit facilities, or maintain its compliance with covenants under its credit agreements, and its preferred stock certificate of designation; negative market conditions, including domestic and global inflationary pressures, the impact of changes in global trade policies and tariffs, and future economic uncertainties, particularly in industries in which the Company is heavily dependent; the Company’s liquidity and ability to obtain additional financing; the impact of new or changes to existing governmental laws and regulations and their application, including tariffs; the outcome of tax examinations, changes in tax laws, and other tax matters; foreign currency exchange rate and interest rate fluctuations; the Company’s ability to repay, refinance or restructure its debt and the debt of certain of its subsidiaries; anticipated or expected purchases or sales of assets; the Company’s ability to maintain compliance with the New York Stock Exchange continued listing requirements and rules, and such known factors as are detailed in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, each as filed with the Securities and Exchange Commission, and in other reports filed by the Company with the Securities and Exchange Commission from time to time. Accordingly, there can be no assurance that the forward-looking information contained herein, including statements regarding the Company’s financial prospects and the implementation of cost-saving measures, will occur or that objectives will be achieved. We assume no obligation to publicly update or revise any forward-looking statements made today or any other forward-looking statements made by the Company, whether as a result of new information, future events or otherwise, except as may be required by law.
Contact:
Nelson M. Haight
Executive Vice President, Chief Financial Officer
(281) 388-5521
| TEAM, INC. AND SUBSIDIARIES | ||||||||
| SUMMARY OF CONSOLIDATED OPERATING RESULTS | ||||||||
| (unaudited, in thousands, except per share data) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2026 | 2025 | |||||||
| Revenues | $ | 215,056 | $ | 198,655 | ||||
| Operating expenses | 161,912 | 148,287 | ||||||
| Depreciation and amortization | 2,989 | 3,102 | ||||||
| Gross margin | 50,155 | 47,266 | ||||||
| Selling, general, and administrative expenses | 48,062 | 47,969 | ||||||
| Depreciation and amortization | 5,464 | 5,300 | ||||||
| Operating loss | (3,371 | ) | (6,003 | ) | ||||
| Interest expense, net | (8,882 | ) | (11,436 | ) | ||||
| Loss on debt extinguishment | — | (11,853 | ) | |||||
| Other income (expense), net | 925 | (204 | ) | |||||
| Loss before income taxes | (11,328 | ) | (29,496 | ) | ||||
| Provision for income taxes | (5 | ) | (222 | ) | ||||
| Net loss | (11,333 | ) | (29,718 | ) | ||||
| Dividend and accretion to redemption value on redeemable preferred stock | (2,874 | ) | — | |||||
| Net loss attributable to common shareholders | $ | (14,207 | ) | $ | (29,718 | ) | ||
| Loss per common share: | ||||||||
| Basic and Diluted | $ | (3.12 | ) | $ | (6.61 | ) | ||
| Weighted-average number of shares outstanding: | ||||||||
| Basic and Diluted | 4,559 | 4,493 | ||||||
| TEAM, INC. AND SUBSIDIARIES | |||||||
| SUMMARY CONSOLIDATED BALANCE SHEET INFORMATION | |||||||
| (in thousands) | |||||||
| March 31, | December 31, | ||||||
| 2026 | 2025 | ||||||
| (unaudited) | |||||||
| Cash and cash equivalents | $ | 12,839 | $ | 18,145 | |||
| Other current assets | 253,137 | 248,260 | |||||
| Property, plant, and equipment, net | 108,512 | 110,628 | |||||
| Other non-current assets | 104,921 | 108,420 | |||||
| Total assets | $ | 479,409 | $ | 485,453 | |||
| Current portion of long-term debt and finance lease obligations | $ | 3,884 | $ | 3,858 | |||
| Other current liabilities | 114,706 | 116,197 | |||||
| Long-term debt and finance lease obligations, net of current maturities | 302,616 | 293,343 | |||||
| Other non-current liabilities | 42,790 | 44,585 | |||||
| Redeemable preferred stock | 54,832 | 51,951 | |||||
| Stockholders’ equity (deficit) | (39,419 | ) | (24,481 | ) | |||
| Total liabilities, redeemable preferred stock and stockholders’ equity (deficit) | $ | 479,409 | $ | 485,453 | |||
| TEAM INC. AND SUBSIDIARIES | ||||||||
| SUMMARY CONSOLIDATED CASH FLOW INFORMATION | ||||||||
| (unaudited, in thousands) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (11,333 | ) | $ | (29,718 | ) | ||
| Depreciation and amortization | 8,453 | 8,402 | ||||||
| Loss on debt extinguishment | — | 11,853 | ||||||
| Amortization of debt issuance costs, debt discounts and deferred financing costs | 1,152 | 1,389 | ||||||
| Deferred income taxes | (796 | ) | (491 | ) | ||||
| Non-cash compensation cost (credit) | 954 | (53 | ) | |||||
| Working capital and other | (7,525 | ) | (20,043 | ) | ||||
| Net cash used in operating activities | (9,095 | ) | (28,661 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Capital expenditures | (2,424 | ) | (1,406 | ) | ||||
| Proceeds from disposal of assets | 14 | — | ||||||
| Net cash used in investing activities | (2,410 | ) | (1,406 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Borrowings (payments) under ABL Facilities, net | 7,200 | 7,982 | ||||||
| Payments under Corre DDTL | — | (35,700 | ) | |||||
| Payments under Corre Uptiered Loan | — | (55,894 | ) | |||||
| Borrowings (payments) under HPS First Lien Term Loan | (438 | ) | 175,000 | |||||
| Payments under ME/RE Loans | — | (23,427 | ) | |||||
| Payments under Corre Incremental Term Loans | — | (48,015 | ) | |||||
| Payments for debt issuance costs | — | (8,053 | ) | |||||
| Other | (525 | ) | (705 | ) | ||||
| Net cash provided by financing activities | 6,237 | 11,188 | ||||||
| Effect of exchange rate changes | (38 | ) | 137 | |||||
| Net change in cash and cash equivalents | $ | (5,306 | ) | $ | (18,742 | ) | ||
| TEAM, INC. AND SUBSIDIARIES | ||||||||
| SEGMENT INFORMATION | ||||||||
| (unaudited, in thousands) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Revenues1 | ||||||||
| IHT | $ | 123,391 | $ | 113,621 | ||||
| MS | 91,665 | 85,034 | ||||||
| $ | 215,056 | $ | 198,655 | |||||
| Operating income (loss)1 | ||||||||
| IHT | $ | 10,917 | $ | 10,731 | ||||
| MS | (1,488 | ) | (3,149 | ) | ||||
| Corporate and shared support services | (12,800 | ) | (13,585 | ) | ||||
| $ | (3,371 | ) | $ | (6,003 | ) | |||
| Segment Adjusted EBIT1, 2 | ||||||||
| IHT | $ | 11,971 | $ | 10,846 | ||||
| MS | (1,242 | ) | (2,815 | ) | ||||
| Corporate and shared support services | (12,425 | ) | (11,070 | ) | ||||
| $ | (1,696 | ) | $ | (3,039 | ) | |||
| Segment Adjusted EBITDA1, 2 | ||||||||
| IHT | $ | 15,287 | $ | 13,662 | ||||
| MS | 2,555 | 1,456 | ||||||
| Corporate and shared support services | (10,131 | ) | (9,808 | ) | ||||
| $ | 7,711 | $ | 5,310 | |||||
| ___________________ | |
| 1 | As noted within the Segments results above, revenues, and operating and depreciation expense attributable to Emission Control Services were reclassified from the MS segment to the IHT segment. |
| 2 | See the accompanying reconciliation of non-GAAP financial measures at the end of this earnings release. |
TEAM, INC. AND SUBSIDIARIES
Non-GAAP Financial Measures
(Unaudited)
The Company uses supplemental non-GAAP financial measures, which are derived from consolidated financial information, including adjusted net income (loss); adjusted net income (loss) per share; earnings before interest and taxes (“EBIT”); Adjusted EBIT (defined below); adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”), free cash flow and net debt to supplement financial information presented on a GAAP basis.
The Company defines adjusted net income (loss) and adjusted net income (loss) per share to exclude the following items: non-routine legal costs and settlements, non-routine professional fees, (gain) loss on debt extinguishment, certain severance charges, non-routine write off of assets, and certain other items that we believe are not indicative of core operating activities. Consolidated Adjusted EBIT, as defined by us, excludes the costs excluded from adjusted net income (loss), as well as income tax expense (benefit), interest charges, foreign currency (gain) loss, pension credit, and items of other (income) expense. Consolidated Adjusted EBITDA further excludes depreciation, amortization and non-cash share-based compensation costs from consolidated Adjusted EBIT. Segment Adjusted EBIT is equal to segment operating income (loss) excluding costs associated with non-routine legal costs and settlements, non-routine professional fees, certain severance charges, and certain other items as determined by management. Segment Adjusted EBITDA further excludes depreciation, amortization, and non-cash share-based compensation costs from segment Adjusted EBIT. Adjusted Selling, General and Administrative Expense is defined to exclude non-routine legal costs and settlements, non-routine professional fees, certain severance charges, certain other items that we believe are not indicative of core operating activities and non-cash compensation. Free Cash Flow is defined as net cash provided by (used in) operating activities minus capital expenditures paid in cash. Net debt is defined as the sum of the current and long-term portions of debt, including finance lease obligations, less cash and cash equivalents.
Management believes these non-GAAP financial measures are useful to both management and investors in their analysis of our financial position and results of operations. In particular, adjusted net income (loss), adjusted net income (loss) per share, consolidated Adjusted EBIT, and consolidated Adjusted EBITDA are meaningful measures of performance which are commonly used by industry analysts, investors, lenders, and rating agencies to analyze operating performance in our industry, perform analytical comparisons, benchmark performance between periods, and measure our performance against externally communicated targets. Our segment Adjusted EBITDA is also used as a basis for the Chief Operating Decision Maker (Chief Executive Officer) to evaluate the performance of our reportable segments. Free cash flow is used by our management and investors to analyze our ability to service and repay debt and return value directly to stakeholders.
Non-GAAP measures have important limitations as analytical tools, because they exclude some, but not all, items that affect net earnings and operating income. These measures should not be considered substitutes for their most directly comparable U.S. GAAP financial measures and should be read only in conjunction with financial information presented on a GAAP basis. Further, our non-GAAP financial measures may not be comparable to similarly titled measures of other companies who may calculate non-GAAP financial measures differently, limiting the usefulness of those measures for comparative purposes. The liquidity measure of free cash flow does not represent a precise calculation of residual cash flow available for discretionary expenditures. Reconciliations of each non-GAAP financial measure to its most directly comparable GAAP financial measure are presented below.
| TEAM, INC. AND SUBSIDIARIES | ||||||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | ||||||||
| (unaudited, in thousands except per share data) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Adjusted Net Loss: | ||||||||
| Net loss | $ | (11,333 | ) | $ | (29,718 | ) | ||
| Professional fees and other1 | 1,606 | 2,007 | ||||||
| Write-off of software cost | — | 45 | ||||||
| Legal costs and litigation reserves (refunds) | (1,560 | ) | 490 | |||||
| Severance charges, net2 | 1,629 | 467 | ||||||
| Loss on debt extinguishment | — | 11,853 | ||||||
| Tax impact of adjustments and other net tax items | (46 | ) | (13 | ) | ||||
| Adjusted Net Loss | $ | (9,704 | ) | $ | (14,869 | ) | ||
| Dividend and accretion to redemption value on redeemable preferred stock | (2,874 | ) | — | |||||
| Adjusted Net Loss attributable to common shareholders | $ | (12,578 | ) | $ | (14,869 | ) | ||
| Adjusted Net Loss per common share: | ||||||||
| Basic and Diluted | $ | (2.76 | ) | $ | (3.31 | ) | ||
| Consolidated Adjusted EBIT and Adjusted EBITDA: | ||||||||
| Net loss | $ | (11,333 | ) | $ | (29,718 | ) | ||
| Provision for income taxes | 5 | 222 | ||||||
| Loss (gain) on equipment sale | (13 | ) | 5 | |||||
| Interest expense, net | 8,882 | 11,436 | ||||||
| Professional fees and other1 | 1,606 | 2,007 | ||||||
| Write-off of software cost | — | 45 | ||||||
| Legal costs and litigation reserves (refunds) | (1,560 | ) | 490 | |||||
| Severance charges, net2 | 1,629 | 467 | ||||||
| Foreign currency loss (gain) | (917 | ) | 205 | |||||
| Pension credit3 | 5 | (51 | ) | |||||
| Loss on debt extinguishment | — | 11,853 | ||||||
| Consolidated Adjusted EBIT | (1,696 | ) | (3,039 | ) | ||||
| Depreciation and amortization | 8,453 | 8,402 | ||||||
| Non-cash share-based compensation cost (credit) | 954 | (53 | ) | |||||
| Consolidated Adjusted EBITDA | $ | 7,711 | $ | 5,310 | ||||
| Free Cash Flow: | ||||||||
| Cash used in operating activities | $ | (9,095 | ) | $ | (28,661 | ) | ||
| Capital expenditures | (2,424 | ) | (1,406 | ) | ||||
| Free Cash Flow | $ | (11,519 | ) | $ | (30,067 | ) | ||
| ___________________ | |
| 1 | For the three months ended March 31, 2026, consists of |
| 2 | For the three months ended March 31, 2026, includes |
| 3 | Represents pension cost (credit) for the U.K. pension plan based on the difference between the expected return on plan assets and the amount of the discounted pension liability. The pension plan was frozen in 1994 and no new participants have been added since that date. |
| TEAM, INC. AND SUBSIDIARIES | ||||||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Continued) | ||||||||
| (unaudited, in thousands) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Segment Adjusted EBIT and Adjusted EBITDA: | ||||||||
| IHT4 | ||||||||
| Operating income | $ | 10,917 | $ | 10,731 | ||||
| Professional fees and other1 | 1,054 | — | ||||||
| Severance charges, net | — | 115 | ||||||
| Adjusted EBIT | 11,971 | 10,846 | ||||||
| Depreciation and amortization | 3,316 | 2,816 | ||||||
| Adjusted EBITDA | $ | 15,287 | $ | 13,662 | ||||
| MS4 | ||||||||
| Operating loss | $ | (1,488 | ) | $ | (3,149 | ) | ||
| Professional fees and other1 | 69 | — | ||||||
| Severance charges, net | 177 | 334 | ||||||
| Adjusted EBIT | (1,242 | ) | (2,815 | ) | ||||
| Depreciation and amortization | 3,797 | 4,271 | ||||||
| Adjusted EBITDA | $ | 2,555 | $ | 1,456 | ||||
| Corporate and shared support services | ||||||||
| Net loss | $ | (20,762 | ) | $ | (37,300 | ) | ||
| Provision for income taxes | 5 | 222 | ||||||
| Loss (gain) on equipment sale | (13 | ) | 5 | |||||
| Interest expense, net | 8,882 | 11,436 | ||||||
| Foreign currency loss (gain) | (917 | ) | 205 | |||||
| Professional fees and other1 | 483 | 2,007 | ||||||
| Write-off of software cost | — | 45 | ||||||
| Legal costs and litigation reserves (refunds) | (1,560 | ) | 490 | |||||
| Severance charges, net2 | 1,452 | 18 | ||||||
| Pension cost (credit)3 | 5 | (51 | ) | |||||
| Loss on debt extinguishment | — | 11,853 | ||||||
| Adjusted EBIT | (12,425 | ) | (11,070 | ) | ||||
| Depreciation and amortization | 1,340 | 1,315 | ||||||
| Non-cash share-based compensation cost (credit) | 954 | (53 | ) | |||||
| Adjusted EBITDA | $ | (10,131 | ) | $ | (9,808 | ) | ||
| Consolidated Adjusted EBITDA | $ | 7,711 | $ | 5,310 | ||||
| ___________________ | |
| 1 | For the three months ended March 31, 2026, consists of |
| 2 | For the three months ended March 31, 2026, includes |
| 3 | Represents pension cost (credit) for the U.K. pension plan based on the difference between the expected return on plan assets and the amount of the discounted pension liability. The pension plan was frozen in 1994 and no new participants have been added since that date. |
| 4 | As noted within the Segments results above, revenues, and operating and depreciation expense attributable to Emission Control Services were reclassified from the MS segment to the IHT segment. |
| TEAM, INC. AND SUBSIDIARIES | ||||||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Continued) | ||||||||
| (unaudited, in thousands except percentage) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Selling, general, and administrative expenses | $ | 48,062 | $ | 47,969 | ||||
| Less: | ||||||||
| Non-cash share-based compensation costs (credit) | 954 | (53 | ) | |||||
| Professional fees and other1 | 1,606 | 2,007 | ||||||
| Legal costs and litigation reserves (refunds) | (1,560 | ) | 490 | |||||
| Severance charges included in SG&A expenses2 | 1,557 | 422 | ||||||
| Total non-cash/non-recurring items | 2,557 | 2,866 | ||||||
| Adjusted Selling, General and Administrative Expense | $ | 45,505 | $ | 45,103 | ||||
| As percentage of revenue | 21.2 | % | 22.7 | % | ||||
| ___________________ | |
| 1 | For the three months ended March 31, 2026, consists of |
| 2 | For the three months ended March 31, 2026, includes |
