Total Revenue

+44.5% (from $31.7M in Q3 2024 to $45.8M in Q3 2025)

Robust revenue expansion driven by both organic sales and acquisitions. The surge is largely attributable to a strong performance in the Fire segment and European operations, which built on prior period momentum to boost overall sales. " "

Business Segments – Fire

+244% (from $5.6M in Q3 2024 to $19.3M in Q3 2025)

The Fire segment’s dramatic growth reflects a deliberate shift toward high-value, high-margin fire protection products and strategic acquisitions that expanded capacity and market reach, building on earlier progress from Q3 2024. " "

Geographic – Europe

+293% (from $3.78M in Q3 2024 to $14.8M in Q3 2025)

European revenue surged as a result of initiatives that strengthened channel partnerships, direct end-user engagement, and operational improvements. These efforts capitalized on previous modest figures to drive a nearly 293% increase and gain a significant foothold in the region. " "

Geographic – USA

+17% (from $14.54M in Q3 2024 to $17.0M in Q3 2025)

USA operations showed steady but modest improvement, growing by 17% due to consistent domestic market performance. Despite structural realignments and transitional challenges from previous initiatives, the region maintained positive momentum compared to Q3 2024. " "

Profitability – Operating Profit

Decline from $3,621K in Q3 2024 to $808K in Q3 2025

Operating profit contracted sharply due to significant margin compression. Increased operating expenses from acquisition-related costs, integration expenses, and reduced gross margins overwhelmed the benefits of higher revenue, reversing the prior strong performance from Q3 2024. " "

Profitability – Net Income

Decline from $2,617K in Q3 2024 to $86K in Q3 2025

Net income plummeted dramatically because the cost pressures and integration expenses from acquisitions led to severe margin erosion, reversing a healthy net income profile from the previous period, despite revenue growth. " "

Cash Flow

Swing from +$3,179K in Q3 2024 to –$8,441K in Q3 2025

Operating cash flow deteriorated significantly, with liquidity tightening due to increased working capital needs, higher capital outlays, and debt repayments. This reversal from a positive cash flow position in Q3 2024 signals challenges in managing cash despite revenue and segment growth. " "

Revenue Guidance

FY 2025

$160M–$170M "

at least $165M " "

raised

Adjusted EBITDA Guidance (excluding FX)

FY 2025

between $18M and $21.5M "

at least $18M " "

no change

LHD Acquisition and Integration Challenges

Previously, Q4 2024 emphasized the strategic importance and careful learning process during integration, while Q1 and Q2 2025 discussions noted iterative closings, regulatory hurdles, and ongoing integration costs ( " " " " , " " );

In Q3 2025, executives highlighted significant operational improvements such as ramp-up in inventory, backlog shipment targets, and key management hires that are driving progress ( " " " );

Improving integration execution with earlier challenges now yielding to robust operational progress.

Service and Maintenance Business Expansion

Earlier periods (Q4 2024 and Q1 2025) introduced the service component via the LHD Care program with strategic emphasis on recurring revenue and global scalability ( " " ); Q2 2025 added discussion on scalability in North America and LATAM tied to software integration ( " " );

Q3 2025 focused on geographic expansion (e.g., LATAM decontamination services) and prioritized service expansion for fiscal 2026, indicating a sharper focus on new revenue streams ( " );

Expansion focus intensifying with increasing geographic diversification and service innovation.

U.S. Fire Turnout Gear Market Expansion and Sales Dynamics

In Q4 2024 and Q1 2025, emphasis was placed on building a “head-to-toe” product offering, strategic acquisitions, product development, and early-stage market penetration ( " " " ); Q2 2025 mentioned challenges such as friction during a sales representative transition but also laid out a vision for long-term recovery ( " " );

Q3 2025 shows a strong rebound in U.S. revenue with specific growth figures, driven by improved sales dynamics and a rebound in fire services business ( " " " );

Robust recovery and growth in the U.S. market driven by leveraging acquisitions and evolving sales strategies.

LineDrive Partnership and Evolving Sales Pipeline

Q1 2025 introduced the partnership with initial training and early pipelines ( " ); Q2 2025 described initial friction with a transition phase and outlined gradual pipeline improvements ( " " ); Q4 2024 had no mention on this topic.

Q3 2025 highlighted that initial friction has eased, with improved performance, regular coordination, and visible momentum in the sales pipeline ( " " );

Transitioning from early friction to positive momentum in pipeline and partnership performance.

Inventory Management and Backlog Reliance for EBITDA Guidance

Q4 2024 and Q1 2025 mentioned inventory adjustments, rightsizing charges, and revised EBITDA guidance based on backlog and inventory profit reversals ( " " " ); Q2 2025 detailed significant inventory increases and the expectation that profit in ending inventory would reverse as shipments occur ( " " );

Q3 2025 emphasized a higher inventory level driven by acquisitions and a robust multiyear backlog (80–90% expected to ship in Q4), with management anticipating a significant release of profit in Q4 to bolster EBITDA ( " " );

Increasing reliance on backlog shipments with normalized inventory adjustments anticipated to improve future EBITDA.

Global Market Performance and Regional Variability

Q4 2024 provided a breakdown by domestic/international sales with noted softness in Asia, whereas Q1 2025 and Q2 2025 detailed varied performance across North America, Latin America, Asia, and Europe with emerging strengths and weaknesses ( " " , " " );

Q3 2025 reported strong global sales growth, with notable shifts such as a rebounding U.S. revenue share and mixed performances in Europe, Asia, and Latin America ( " " " );

Consistent global growth with evolving regional contributions and adjustments in market shares across territories.

Cost Pressures and Margin Challenges

Q4 2024 and Q1 2025 highlighted inventory adjustments, acquisition-related expenses, higher SG&A and third-party fees, and associated margin declines (e.g., 4.6% gross profit drop, operating expense surges) ( " " , " " ); Q2 2025 detailed integration impacts on margins (3.8% negative impact) and inventory profit headwinds ( " " );

Q3 2025 noted a lower gross margin percentage and higher operating expenses due to acquisitions and freight costs, although organic margins showed improvement ( " " " );

Persistent cost pressures continue to challenge margins while organic improvements suggest gradual offsetting of earlier negative impacts.

Foreign Exchange and Currency Risks

Q4 2024 provided extensive discussion on FX impacts driven by the devaluation of the Argentinian peso, affecting operating expenses and adjusted EBITDA, with moderate mentions in Q2 2025 and minimal focus in Q1 2025 ( " " , " );

In Q3 2025, there is no direct discussion of FX risks, though adjusted EBITDA continues to be reported excluding FX;

Reduced emphasis on FX in current discussions, suggesting that such risks are currently less prominent or already factored into exclusions.

Operational and Execution Risks in New Business Ventures

Across Q1 and Q2 2025, there were discussions on integration complexity, challenges with acquisitions, and sales transition issues (e.g., LineDrive friction, regulatory hurdles) ( " " " ); Q4 2024 mentioned integration and system upgrade risks as well as external factors such as weather-related delays ( " " );

Q3 2025 does not explicitly mention new operational risks in ventures, aside from routine inventory and integration issues;

Less explicit focus on new venture risks in the current period, suggesting that earlier execution issues are being managed effectively or deprioritized in the discussion.