BrightView Holdings (BV)·Q1 2026 Earnings Summary

BrightView Q1 FY26: Revenue Beats on Snow Surge, But Margins Disappoint

February 4, 2026 · by Fintool AI Agent

BrightView Holdings (NYSE: BV), the nation's largest commercial landscaping company, reported mixed Q1 FY2026 results on February 4, 2026. Revenue of $614.7M beat consensus by 4.4%, driven by a 111% surge in snow services, but accelerated salesforce investments pushed Adjusted EPS to a loss of $0.01 versus expectations of breakeven-to-slight-profit.

The stock sold off 5.2% to close at $12.94, with investors focused on margin pressure rather than the top-line beat. Management reaffirmed guidance and introduced a new metric — the land contract book of business, up 2% — as a leading indicator of growth to come.

Did BrightView Beat Earnings?

Mixed. BrightView beat on revenue but missed on profitability metrics.

The revenue beat was powered by exceptional snow activity, while the EBITDA miss reflects management's deliberate decision to accelerate investments in the salesforce — adding approximately 80 new sellers in Q1 alone (+180 total since the initiative began).

What Drove the Quarter?

Segment Performance

Maintenance Services ($436.4M, +7% YoY):

• Snow: $68.4M (+111% YoY) — the standout performer, benefiting from favorable weather conditions versus a weak prior-year comp
• Land: $368.0M (-2% YoY) — slight decline due to weather-related impacts, though management expects Land growth to accelerate in H2 FY26

Development Services ($179.2M, -7% YoY):

• Decline driven by timing and mix of projects, not demand concerns
• Segment EBITDA margin still expanded +100bps YoY despite lower revenue

Key Operational Metrics

Customer retention of 83.5% (+250bps YoY) represents sequential improvement and validates the "One BrightView" transformation strategy.

What Did Management Guide?

Guidance reaffirmed. BrightView maintained its FY2026 outlook:

Management emphasized that the salesforce investments are front-loaded but will drive Land revenue acceleration in the back half of FY26. CEO Dale Asplund highlighted the company's commitment to "delivering a third record EBITDA year."

2030 Aspirational Targets

Looking further out, BrightView reiterated its long-term 2030 targets:

• Revenue: ~$4B+
• Adjusted EBITDA: ~$650M+
• Adjusted EBITDA Margin: ~16%+
• Free Cash Flow Conversion: ~40%+

How Did the Stock React?

BV shares sold off sharply following earnings, declining 5.2% to close at $12.94. Despite the revenue beat and reaffirmed guidance, investors appear concerned about margin pressure and the -$0.01 EPS miss.

The stock hit an intraday low of $12.35, down nearly 10% at the session low before recovering. BV now trades approximately 24% below its 52-week high, reflecting investor skepticism about the pace of margin improvement and when salesforce investments will convert to top-line growth.

What Changed From Last Quarter?

Positive shifts:

• Snow revenue swung from a headwind to a major tailwind (+111% YoY vs prior-year comp)
• Customer retention improved sequentially (83.5% vs prior quarters)
• Salesforce investments accelerating as planned (+80 new sellers)
• Balance sheet remains solid with ample liquidity and no long-term maturities until 2029

Areas to watch:

• Land revenue growth remains elusive (-2% YoY) — management expects H2 improvement but hasn't delivered yet
• Adjusted EPS swung to a loss vs. breakeven in Q1 FY25
• Development Services timing-related softness (-7% YoY)
• Depreciation increased 41% YoY to $42.9M (from $30.4M), reflecting prior fleet investments

Balance Sheet & Capital Allocation

Capital expenditures totaled $54.7M in Q1 (vs $58.7M prior year), with Maintenance Services accounting for $48.7M (+17% YoY) focused on fleet investments to reduce frontline turnover and improve customer retention. The company repurchased 1.1 million shares during the quarter, demonstrating confidence in the stock. Management continues to pursue M&A with a focus on service-line density (tree care, aquatics) and geographic expansion.

Q&A Highlights: What Analysts Wanted to Know

The earnings call Q&A revealed several key themes investors are focused on:

Salesforce Investment Trajectory

Bob Labich (CJS Securities): Asked whether the company would pause hiring after beating its pace. CEO Dale Asplund was emphatic: "We are not going to slow down... If there's opportunity and the branch is going to absorb them and go get more market share, I'm going to keep giving them those investments."

Management added 80 new sellers in Q1 alone, on top of 100 added last year — roughly 1/3 of the way to the 500-seller goal by 2030. The key metric: new sellers typically break even at 6 months and become fully productive at 12+ months, meaning the Q1 hires will contribute meaningfully to FY27.

New Metric: Land Contract Book Growing 2%

Management introduced a new KPI that investors should track: the annualized value of land contracts on the books, now ~$1.15B. This metric has grown 2% over the last 3 quarters — the first sustained growth in years — and serves as a leading indicator for revenue growth in the back half of FY26.

CFO Brett Urban explained the math: "Two-thirds of our $1.7B land revenue is contract business... that's roughly $1.15B of contract value on the books. A 2% increase is roughly $22-23M, and that gives us confidence as we get into the busy season."

January Snow Update: Potentially Exceeding Guidance

Management noted January has been a "very strong month" with storms across Texas to the Northeast. Key quote from Asplund: "If we did quick basic math, we're probably going to pace ahead of the top end of our range ($190-220M)... we'll update everybody come the end of Q2."

Snow margin dynamics were also discussed: Fixed-tier contracts limit margin until higher tiers trigger, explaining why Q1 saw only $6M EBITDA on $36M incremental snow revenue (below the target 20-25% flow-through). Management expects profitability to improve as tiered pricing triggers in Q2.

Capital Allocation: "Earn the Right to Do M&A"

CEO Asplund delivered a memorable quote on M&A strategy: "You have to earn the right to do M&A by growing your own business before you've earned the right to buy somebody else's business."

The company increased share repurchase authorization from $100M to $150M, repurchasing at an average 7.5x multiple vs. acquiring companies at 8-9x. Asplund: "At 7.5 times, we'd have a hard time getting a quality company like we have at BrightView for that multiple."

Employee Turnover: Down 30% in 2 Years

A key operational success: frontline employee turnover has declined approximately 30% since CEO Asplund took over. The company also implemented "advanced pay" allowing employees early access to earned wages — demonstrating continued investment in becoming the "employer of choice."

Customer Retention Goal: 90%+

When asked about the retention runway, Asplund set an ambitious long-term target: "I'm not going to stop until I can say one day, 'We're keeping 90%+ of our business.'" Current retention stands at 83.5%, up from 79% two years ago, with the next milestone at 85%.

Key Risks & Concerns

1. Land revenue growth execution — The 1-2% Land growth guidance requires an H2 acceleration that hasn't yet materialized.

2. Salesforce investment payback — The +180 new sellers represent significant upfront cost; ROI depends on converting pipeline to revenue.

3. Weather dependency — Snow revenue can swing dramatically quarter-to-quarter, creating earnings volatility.

4. Development Services timing — Project delays and mix shifts could continue to pressure results.

5. Leverage levels — Net Debt / EBITDA of 2.4x is manageable but leaves less room for aggressive capital deployment.

The Bottom Line

BrightView delivered a solid revenue beat driven by exceptional snow conditions, demonstrating the optionality in their Maintenance Services segment. However, the deliberate margin sacrifice to accelerate salesforce investments created a profitability miss that investors punished — the stock fell 5.2% on the session.

The key question heading into H2 FY26: Will the salesforce investments translate into the 1-2% Land growth management is guiding to? The leading indicators are encouraging — customer retention at 83.5%, contract book up 2%, and 180 new sellers ramping — but revenue hasn't followed yet.

One encouraging data point: the new land contract book metric (up 2% to ~$1.15B annualized) provides a forward-looking signal that growth may be coming. Management's reaffirmation of full-year guidance and commitment to a third consecutive record EBITDA year provides a floor, but the stock's 24% discount to its 52-week high suggests the market is in "show me" mode.

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Data sources: BrightView Q1 FY2026 earnings call transcript , earnings presentation , 8-K filing , S&P Global estimates