Total Revenue

+9.7% (from $213.30M to $234.05M)

Total Revenue grew by 9.7% YoY as the company built on the previous period’s lower revenue base. The increase reflects solid contributions from key segments, notably Infrastructure and BTS, demonstrating growth in both organic performance and strategic initiatives. " "

Infrastructure Revenue

+11.7% (from $90.25M to $100.84M)

Infrastructure revenue increased by 11.7% YoY driven by strong performance in sub-segments. The Private Sector within Infrastructure more than doubled (up 119% from $12.25M to $26.91M) and the Fixed-Unit Price sub-segment surged by 254% (from $1.57M to $5.55M). These robust figures underscore the effectiveness of targeted acquisitions and market demand compared to the previous period’s subdued levels. " "

Building, Tech & Sciences Revenue

+17% (from $59.98M to $70.19M)

BTS revenue climbed 17% YoY, reflecting strong organic growth and successful execution of strategic initiatives. This improvement over the previous period suggests enhanced market positioning and customer demand for the company’s technology and consulting services. " "

Geospatial Solutions Revenue

Nearly flat (from $63.07M to $63.02M)

Geospatial Solutions remained flat YoY. Despite prior year organic growth or acquisition activities, offsetting factors (possibly market saturation or balancing organic gains with challenges) led to stable revenues compared to Q1 2024. " "

Cash and Cash Equivalents

+18.9% (from $44,766K to $53,212K)

Cash increased by 18.9% YoY, driven by improved liquidity from better operating performance. This stronger balance sheet compared to Q1 2024 indicates successful cash management and reflects higher net cash generation from operations. " "

Total Current Assets

+20.7% (increased to $400,711K)

Total current assets grew by approximately 20.7% YoY due to increases in cash, billed and unbilled receivables, and other short-term assets. This suggests an improvement in working capital management relative to the previous period. " "

Net Income

+5% (from $408K to $428K)

Net income exhibited a modest 5% increase YoY. However, this slight growth is contrasted by changes in the capital structure from the previous period, as the net income gain was not enough to counterbalance the effect of a significant rise in the weighted average number of shares. " "

Basic EPS

Decreased from $0.03 to $0.01

Basic EPS declined sharply despite a slight net income improvement because the weighted average shares increased from 15.27M to 62.25M. This dilution of earnings per share emphasizes the impact of a substantial increase in shares outstanding compared to Q1 2024. " "

Operating Cash Flow

+96% (from $19,554K to $38,372K)

Operating cash flow nearly doubled YoY, rising by approximately 96%. This significant improvement highlights better operational efficiency and cash conversion. The enhanced cash generation further supports the company’s liquidity position compared to Q1 2024. " "

Gross Revenue

FY 2025

$1.026 billion to $1.045 billion "

$1.026 billion to $1.045 billion "

no change

GAAP EPS

FY 2025

$0.52 to $0.62 "

$0.52 to $0.62 "

no change

Adjusted EPS

FY 2025

$1.27 to $1.37 "

$1.27 to $1.37 "

no change

Organic Growth

FY 2025

Targeting mid- to high single-digit organic growth "

5% to 9% " "

no change

Margin Expansion / EBITDA Margin Improvement

FY 2025

Targeting an improvement of 150 basis points "

150 basis points " "

no change

Free Cash Flow Conversion

FY 2025

Expected to achieve 60% "

60% of adjusted EBITDA " "

no change

Cross-Selling Revenue Target

FY 2025

no prior guidance

$40 million over the next 12 months " "

no prior guidance

Organic Growth and Backlog Strength

In Q4, Q3 and Q2 2024, NV5 emphasized strong organic growth across multiple segments—with reported growth rates ranging from mid-single digits to 6%–7%—and highlighted robust, record or growing backlogs (e.g. $904 million in Q4, $914 million in Q3). " " " " " " "

In Q1 2025, NV5 reported 5% organic growth on gross revenues and reiterated its confidence, driven by positive performances in Infrastructure and Technology segments and expecting Geospatial to accelerate as the year progresses. " " "

Consistent emphasis on organic growth and backlog strength with minor variations in reported growth percentages and a steady optimistic outlook.

Margin Expansion and Cost Efficiency Initiatives

Across Q4, Q3, and Q2 2024, NV5 set a clear 150 basis point target for EBITDA margin expansion supported by various initiatives—cost reductions, administrative optimizations, and technology investments—with detailed discussions on integration costs, inflationary pressures, and efficiency improvements. " " " " " "

In Q1 2025, NV5 reaffirmed its pursuit of a 150 basis point margin improvement while implementing cost-efficiency measures (e.g. indirect labor reductions, office consolidation, AI tools) and noted a slight margin lag in Q1 with expectations for further improvements later in the year. " "

The sentiment remains positive and mission‐driven; while strategies are consistent, Q1 2025 shows a cautious ramp-up with expectations for later gains.

Geospatial Segment Integration and Federal Contract Dependence

In Q4, Q3, and Q2 2024, NV5 discussed integrating acquisitions (e.g. L3Harris, XM Geospatial) to enhance service offerings with federal contract revenue ranging from 50% to 58% (with occasional quiet periods and notable contract wins), providing confidence in a solid stream of federal work. " " " " " " " "

In Q1 2025, NV5 noted that integration challenges—especially on the software side—had begun to improve, with the Geospatial software group growing 11% YoY and federal contracts (about 48% of segment revenue) experiencing slight delays but remaining a significant contributor. " " " "

The focus on integration and federal reliance is persistent; recent comments highlight initial integration hurdles now showing signs of resolution, maintaining robust federal engagement.

Data Center Business Growth Opportunities

In Q4, Q3, and Q2 2024, discussions highlighted strong organic growth (often 25% or higher), strategic acquisitions (e.g. Senergy BCS, Kisebach, myBIMteam), international vs. domestic dynamics, and ambitious revenue targets (e.g. a 10× increase over five years), underlining the cross‐selling opportunities and energy challenges. " " " " " " " "

In Q1 2025, NV5 reported 17% revenue growth in the Buildings & Technologies segment that includes data centers and detailed the acquisition of Herman Cx to access new data center clients and drive cross‐selling opportunities. " " "

Strong growth remains a central theme. Sentiment is consistently bullish, with both organic and acquisition-driven strategies supporting an expansive outlook.

Acquisition Strategy and Integration Risks

In Q4, Q3, and Q2 2024, NV5’s acquisition strategy centered on complementary, tech-enabled add-ons (e.g. Group Delta, Global Fire Protection Group, California Water Resources Group) with discussions on integration costs and risks (e.g. temporary margin pressures, nonrecurring costs) and a focus on using cash for accretive deals. " " " " " " "

In Q1 2025, NV5 continued to emphasize acquisitions that reinforce its service offerings (e.g. Herman Cx, CRS Survey), while acknowledging some integration challenges in the Geospatial segment that are beginning to yield improved efficiency and profitability. " " " " "

The acquisition strategy remains a cornerstone; integration risks are openly discussed and managed through restructuring and rapid cross‐selling, with a trend toward smoother post-acquisition execution.

Financial Reporting and Revenue Recognition

In Q3 2024, NV5 addressed isolated revenue recognition adjustments tied to an acquired Axim customer (leading to minor restatements and adjustments in guidance), while Q2 and Q4 2024 did not highlight any major issues. " " " " "

In Q1 2025, there was no specific discussion on financial reporting or revenue recognition issues, implying that previous concerns had minimal or no ongoing impact. " " "

These issues appear to have been one-off events; after adjustments in Q3 2024, the current period reflects stable and uncontroversial reporting practices.

Cash Flow Concerns (Unbilled Receivables and DSO Increase)

In Q2 2024, NV5’s CFO noted cash flow usage due to a lag in converting unbilled receivables during a business ramp-up (notably in the Geospatial segment), while Q4 2024 expanded on these concerns with detailed plans for aligning contract milestones to improve DSO. " " " "

In Q1 2025, no specific cash flow concerns regarding unbilled receivables or DSO were mentioned; the focus was on robust cash flow generation (with a 96% increase and a conversion rate of 129% on adjusted EBITDA) and an aim for a 60% conversion rate. "

While earlier periods addressed short-term cash flow challenges and planned remediation, the current period reflects improved cash flow outcomes with no acute concerns.

Run Rate Revenue Target Ambitions

In Q2, Q3, and Q4 2024, NV5 consistently reiterated its goal of reaching a $1 billion revenue run rate by the end of 2024 or start of 2025, with forward-looking targets (e.g. $1.6 billion by 2028) and reassurances of scalable growth through various segments. " " " "

In Q1 2025, there was no specific new mention of run rate revenue target ambitions; the focus shifted to detailed organic growth and backlog commentary, implying continuity with previous targets. "

The emphasis on run rate targets remains steady across periods, with earlier periods setting ambitious long-term goals that carry forward unchanged into Q1 2025.

MEP Business Sensitivity to Interest Rate Changes

In Q2 2024, NV5 discussed the sensitivity of its real estate transactional business—with an impact on refinancing and real estate deals—while in Q3 2024 there was a focused discussion on the MEP business, noting that higher interest rates had reduced the pace of large CapEx projects but that resource redeployment was underway. " " "

In Q1 2025, there was no discussion of interest rate sensitivity in relation to the MEP business, suggesting that it is not a current focal point for the company’s commentary [Q1 absence].

Mention of interest rate sensitivity was isolated to earlier periods (notably Q3 2024) and does not appear in Q1 2025, possibly due to changing market focus or improved market conditions for MEP-related work.

Shareholder-Friendly Capital Allocation

Across Q2, Q3, and Q4 2024, there was no significant mention of a decline in shareholder-friendly capital allocation, though acquisition strategies and buyback plans (e.g. using cash for accretive acquisitions) were mentioned, supporting shareholder value. "

In Q1 2025, while not a primary focus area, NV5 mentioned a $20 million buyback plan and maintained a strategy of funding acquisitions with cash to avoid dilution, signaling continued commitment to shareholder-friendly practices. "

There is no observed decline; the approach to capital allocation appears stable with ongoing efforts to enhance shareholder value through buybacks and accretive acquisitions.