Vestis (NYSE:VSTS) reported its first quarter fiscal 2026 results on Tuesday, February 10, 2026, highlighting significant progress in its strategic business transformation even as top-line revenue faced moderate headwinds.
The Atlanta-based leader in uniforms and workplace supplies posted revenue of $663.4 million, a 3% decrease compared to the prior year, primarily driven by product mix shifts toward lower-priced supplies and legacy commercial practices.
Despite a GAAP net loss of $6.4 million ($0.05 per diluted share) due to transformation-related costs, the company’s non-GAAP metrics showcased a healthier underlying performance.
Adjusted net income reached $13.1 million, or $0.10 per share, beating the lowered expectations of some analysts.
More importantly, Vestis generated $37.7 million in operating cash flow—a sharp improvement from just $3.8 million in the year-ago period—and reported adjusted free cash flow of $42.9 million.
CEO Jim Barber emphasized that the quarter was a "solid start" to a pivotal year.
The company’s transformation plan, which aims to unlock $75 million in annual cost savings by the end of 2026, is already yielding results.
Vestis reported a 7% improvement in plant productivity and a 12% reduction in customer complaints year-over-year.
Reaffirming its fiscal 2026 outlook, Vestis expects full-year revenue to be flat to down 2%, with adjusted EBITDA between $285 million and $315 million.