TH Q2 2026 - Preliminary Earnings Alert
Event: Quartr Q2 2026 event Retrieved: 2026-08-10T22:52:00Z Comparison mode: maximal Scorecard contract: v1 Source status: release=available (earnings release 3688167, 15 pages; quarterly report 3688165 not read) | financials=earnings release only | transcript=available and complete (call 2026-08-10 13:00Z)
Consensus scorecard
| Metric / basis | Quartr actual | API Ninjas consensus | Beat/Miss | Beat/Miss % |
|---|---|---|---|---|
| Revenue / consolidated total revenue | $85.455m | $79.296m | Beat +$6.159m | +7.8% |
| EPS / GAAP basic and diluted | $(0.09) | $(0.106) | Beat +$0.016 | +15.1% |
- Consensus scorecard, bulleted equivalent:
- Revenue / consolidated total revenue: Quartr actual $85.455m against API Ninjas consensus $79.296m - Beat +$6.159m, +7.8%.
- EPS / GAAP basic and diluted: Quartr actual $(0.09) against API Ninjas consensus $(0.106) - Beat +$0.016, +15.1%.
Reported results and guidance
| Q2 income statement ($000s except per share) | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Services income | $51,828 | $40,467 | +28.1% |
| Specialty rental income | $30,757 | $6,716 | +358.0% |
| Construction fee income | $2,870 | $14,423 | −80.1% |
| Total revenue | $85,455 | $61,606 | +38.7% |
| Services and construction costs | $47,583 | $45,561 | +4.4% |
| Specialty rental costs | $4,657 | $2,789 | +67.0% |
| Depreciation of specialty rental assets | $17,418 | $13,584 | +28.2% |
| Gross profit | $15,797 | $(328) | swing to profit |
| Selling, general and administrative | $18,753 | $12,664 | +48.1% |
| Other depreciation and amortization | $4,120 | $4,082 | +0.9% |
| Other expense (income), net | $420 | $(156) | swing to expense |
| Operating loss | $(7,496) | $(16,918) | loss narrowed 55.7% |
| Interest expense, net | $1,012 | $937 | +8.0% |
| Loss before income tax | $(8,508) | $(17,855) | loss narrowed 52.4% |
| Income tax expense (benefit) | $473 | $(2,937) | swing to expense |
| Net loss | $(8,981) | $(14,918) | loss narrowed 39.8% |
| Net income attributable to noncontrolling interest | $54 | $13 | +315.4% |
| Net loss attributable to TH common stockholders | $(9,035) | $(14,931) | loss narrowed 39.5% |
| Net loss per share, basic and diluted | $(0.09) | $(0.15) | loss narrowed 40.0% |
| Weighted average shares, basic and diluted | 100,214,415 | 99,396,381 | +0.8% |
| Adjusted gross profit (non-GAAP) | $33,215 | $13,256 | +150.6% |
| EBITDA (non-GAAP) | $14,042 | $748 | +1,777% |
| Adjusted EBITDA (non-GAAP) | $18,215 | $3,503 | +420.0% |
| Average utilized beds | 11,760 | 7,482 | +57.2% |
| Utilization | 67% | 45% | +22 points |
- Q2 income statement, bulleted equivalent (Q2 2026 vs Q2 2025): services income $51,828k vs $40,467k (+28.1%); specialty rental income $30,757k vs $6,716k (+358.0%); construction fee income $2,870k vs $14,423k (−80.1%); total revenue $85,455k vs $61,606k (+38.7%); services and construction costs $47,583k vs $45,561k; specialty rental costs $4,657k vs $2,789k; depreciation of specialty rental assets $17,418k vs $13,584k; gross profit $15,797k against $(328)k; SG&A $18,753k vs $12,664k (+48.1%); other depreciation and amortization $4,120k vs $4,082k; other expense (income), net $420k against $(156)k; operating loss $(7,496)k vs $(16,918)k; interest expense, net $1,012k vs $937k; loss before income tax $(8,508)k vs $(17,855)k; income tax expense (benefit) $473k against $(2,937)k; net loss $(8,981)k vs $(14,918)k; net income attributable to noncontrolling interest $54k vs $13k; net loss attributable to common stockholders $(9,035)k vs $(14,931)k; loss per share, basic and diluted, $(0.09) vs $(0.15); weighted average basic and diluted shares 100,214,415 vs 99,396,381; adjusted gross profit $33,215k vs $13,256k; EBITDA $14,042k vs $748k; adjusted EBITDA $18,215k vs $3,503k; average utilized beds 11,760 vs 7,482 and utilization 67% against 45%.
| Q2 segment results ($000s) | Q2 2026 revenue | Q2 2025 revenue | Q2 2026 adj. gross profit | Q2 2025 adj. gross profit |
|---|---|---|---|---|
| Workforce Hospitality Solutions | $36,328 | $15,042 | $19,435 | $3,687 |
| Hospitality & Facilities Services - South | $32,639 | $36,166 | $7,357 | $10,547 |
| Government | $13,495 | $7,487 | $6,396 | $(1,080) |
| All Other | $2,993 | $2,911 | $27 | $102 |
| Total | $85,455 | $61,606 | $33,215 | $13,256 |
- Segment results, bulleted equivalent (Q2 2026 vs Q2 2025): Workforce Hospitality Solutions revenue $36,328k vs $15,042k with adjusted gross profit $19,435k vs $3,687k; Hospitality & Facilities Services - South revenue $32,639k vs $36,166k with adjusted gross profit $7,357k vs $10,547k, average daily rate $72.36 vs $69.62, average utilized beds 4,880 vs 5,632 and utilization 70% against 76%; Government revenue $13,495k vs $7,487k with adjusted gross profit $6,396k against $(1,080)k; All Other revenue $2,993k vs $2,911k with adjusted gross profit $27k vs $102k. The four segments sum to the consolidated $85,455k and $61,606k totals.
| Six-month item ($000s except per share) | 6M 2026 | 6M 2025 | Change |
|---|---|---|---|
| Total revenue | $158,236 | $131,503 | +20.3% |
| Gross profit | $22,680 | $17,636 | +28.6% |
| Selling, general and administrative | $33,310 | $27,469 | +21.3% |
| Other expense (income), net | $3,048 | $106 | +2,775% |
| Operating loss | $(21,819) | $(17,994) | loss widened 21.3% |
| Loss on extinguishment of debt | - | $2,370 | none this year |
| Interest expense, net | $1,904 | $5,266 | −63.8% |
| Net loss | $(21,943) | $(21,377) | loss widened 2.6% |
| Net loss per share, basic and diluted | $(0.22) | $(0.22) | unchanged |
| Adjusted EBITDA (non-GAAP) | $28,157 | $25,072 | +12.3% |
| Net cash provided by operating activities | $111,020 | $15,001 | +640.1% |
| Discretionary cash flows (non-GAAP) | $108,248 | $9,270 | +1,068% |
| Purchases of specialty rental assets | $(111,785) | $(24,261) | +360.8% |
| Net cash used in investing activities | $(150,896) | $(24,911) | +505.7% |
- Six-month results, bulleted equivalent (6M 2026 vs 6M 2025): total revenue $158,236k vs $131,503k (+20.3%); gross profit $22,680k vs $17,636k; SG&A $33,310k vs $27,469k; other expense (income), net $3,048k vs $106k; operating loss $(21,819)k vs $(17,994)k; loss on extinguishment of debt none against $2,370k; interest expense, net $1,904k vs $5,266k; net loss $(21,943)k vs $(21,377)k; loss per share $(0.22) in both periods; adjusted EBITDA $28,157k vs $25,072k (+12.3%); net cash provided by operating activities $111,020k vs $15,001k; discretionary cash flows $108,248k vs $9,270k after maintenance capital expenditures of $(2,772)k against $(5,731)k; purchases of specialty rental assets $(111,785)k vs $(24,261)k; purchases of property, plant and equipment $(5,624)k vs $(650)k; other investing activities $(34,093)k against none; net cash used in investing $(150,896)k vs $(24,911)k; net cash provided by (used in) financing $37,610k against $(161,543)k, which in the prior year included the $(181,446)k repayment of the 2025 Senior Secured Notes; cash ended the period at $6,068k against $19,237k.
| Balance sheet ($000s) | June 30, 2026 | December 31, 2025 |
|---|---|---|
| Cash and cash equivalents | $6,068 | $8,348 |
| Accounts receivable, less allowance for credit losses | $50,428 | $56,200 |
| Total current assets | $63,870 | $73,338 |
| Specialty rental assets, net | $434,683 | $332,406 |
| Goodwill and other intangibles, net | $73,639 | $80,370 |
| Other non-current assets | $81,998 | $44,091 |
| Total assets | $654,190 | $530,205 |
| Accounts payable | $47,406 | $44,393 |
| Deferred revenue and customer deposits | $21,252 | $9,282 |
| Total current liabilities | $98,856 | $84,043 |
| Long-term debt | $40,000 | - |
| Other non-current liabilities | $145,547 | $57,102 |
| Total liabilities | $284,403 | $141,145 |
| Accumulated earnings | $273,305 | $295,259 |
| Total stockholders' equity | $369,787 | $389,060 |
- Balance sheet, bulleted equivalent (June 30, 2026 vs December 31, 2025): cash and cash equivalents $6,068k vs $8,348k; accounts receivable net $50,428k vs $56,200k; other current assets $7,374k vs $8,790k; total current assets $63,870k vs $73,338k; specialty rental assets net $434,683k vs $332,406k; goodwill and other intangibles net $73,639k vs $80,370k; other non-current assets $81,998k vs $44,091k; total assets $654,190k vs $530,205k; accounts payable $47,406k vs $44,393k; deferred revenue and customer deposits $21,252k vs $9,282k; other current liabilities $30,198k vs $30,368k; total current liabilities $98,856k vs $84,043k; long-term debt $40,000k against none; other non-current liabilities $145,547k vs $57,102k; total liabilities $284,403k vs $141,145k; common stock and other stockholders' equity $96,804k vs $93,998k; accumulated earnings $273,305k vs $295,259k; noncontrolling interest $(322)k vs $(197)k; total stockholders' equity $369,787k vs $389,060k.
| Full-year 2026 outlook | New guide | Prior guide | Change as stated by the company |
|---|---|---|---|
| Total revenue | $410m - $420m | not restated in the release | raised 11% |
| Adjusted EBITDA (non-GAAP) | $85m - $95m | not restated in the release | raised 13% |
| Total capital expenditures, excluding acquisitions | $490m - $510m | not restated in the release | not characterized |
- Guidance, bulleted equivalent: full-year 2026 total revenue is guided to $410m to $420m and Adjusted EBITDA to $85m to $95m, which the release headlines as raises of 11% and 13% respectively; total capital expenditures excluding acquisitions are guided to $490m to $510m. The release does not restate the prior guidance ranges, so the prior figures are not reproduced here. Beyond 2026 the company states a target of annualized revenue exceeding $700m and annualized Adjusted EBITDA above $260m exiting 2027, a projection it says assumes approximately $30m of annual variable WHS revenue above the committed minimum, is supported entirely by the existing contract portfolio, and assumes no contribution from the commercial pipeline. The company also states that it expects to incur transitional costs from Government-segment network optimization over the balance of 2026, already incorporated into the 2026 outlook.
Key bullish aspects
- Total revenue of $85.455m beat the API Ninjas consensus of $79.296m by $6.159m, or 7.8%, and the loss per share of $(0.09) beat the $(0.106) consensus by $0.016, or 15.1%.
- Revenue rose 38.7% year over year and Adjusted EBITDA rose 420.0% to $18.215m from $3.503m, so the operating leverage claim is visible in the reported numbers rather than only in the narrative.
- Gross profit swung to $15.797m from $(328)k a year earlier, and adjusted gross profit rose 150.6% to $33.215m, on revenue growth of 38.7%. Adjusted gross margin moved to 38.9% from 21.5%.
- The Workforce Hospitality Solutions segment more than doubled, with revenue of $36.328m against $15.042m and adjusted gross profit of $19.435m against $3.687m. It is now the largest segment by adjusted gross profit and the company expects it to be the largest by revenue for full year 2026.
- The Government segment swung to $6.396m of adjusted gross profit from $(1.080)m on revenue of $13.495m against $7.487m, following the March 2025 reactivation of the Dilley Community.
- Consolidated average utilized beds rose 57.2% to 11,760 and utilization rose to 67% from 45%.
- Six-month net cash provided by operating activities was $111.020m against $15.001m, and discretionary cash flows were $108.248m against $9.270m, driven by an $85.218m favorable swing in operating assets and liabilities that the company attributes to customer advance payments on recent WHS awards.
- Full-year 2026 revenue and Adjusted EBITDA guidance were raised by 11% and 13% as stated by the company, to $410m-$420m and $85m-$95m.
- The company reports over $1.4bn of multi-year contract awards and over 9,000 contracted WHS beds secured since January 2026, with a stated pipeline exceeding 20,000 additional beds.
- On July 24, 2026 the company replaced its $175m ABL facility with a $660m facility maturing in July 2031, which it says reduces borrowing costs by up to 250 basis points.
- Total net leverage was 0.6x at June 30, 2026 with approximately $141m of total available liquidity.
Key bearish aspects
- The company remains loss-making at every level: operating loss $(7.496)m, net loss $(8.981)m, and a six-month net loss of $(21.943)m that is wider than the prior year's $(21.377)m despite 20.3% six-month revenue growth.
- Six-month Adjusted EBITDA of $28.157m grew only 12.3% against 20.3% six-month revenue growth, so the quarter's 420% Adjusted EBITDA growth does not carry through to the half.
- SG&A rose 48.1% to $18.753m in the quarter, faster than the 38.7% revenue growth, and now exceeds gross profit of $15.797m.
- Construction fee income fell 80.1% to $2.870m from $14.423m, so $11.553m of prior-year revenue disappeared and the 38.7% headline growth is net of that decline.
- The Hospitality & Facilities Services - South segment declined on every operating measure: revenue $32.639m against $36.166m, adjusted gross profit $7.357m against $10.547m, average utilized beds 4,880 against 5,632, and utilization 70% against 76%. Adjusted gross margin in that segment fell to 22.5% from 29.2% despite ADR rising to $72.36 from $69.62.
- The tax line swung to a $473k expense from a $(2.937)m benefit, adding roughly $3.4m to the year-over-year loss comparison at the bottom line even as pre-tax loss narrowed by $9.3m.
- Six-month other expense (income), net rose to $3.048m from $106k, an increase of $2.942m that under the company's own definition includes community pre-opening costs.
- The balance sheet leveraged up sharply over six months: total liabilities rose 101.5% to $284.403m from $141.145m, long-term debt went to $40.000m from none, and other non-current liabilities rose 154.9% to $145.547m from $57.102m.
- Cash fell to $6.068m from $8.348m at December 31, 2025 despite $111.020m of six-month operating cash flow, because six-month investing outflows were $150.896m.
- Accumulated earnings fell $21.954m to $273.305m and total stockholders' equity fell 5.0% to $369.787m over the six months.
- Guided 2026 capital expenditures of $490m-$510m exceed guided 2026 revenue of $410m-$420m, so the growth program consumes more than a full year of revenue in the current year.
- Deferred revenue and customer deposits rose 129.0% to $21.252m, meaning part of the cash-flow strength is customer prepayment that has not yet been earned as revenue.
Key uncertainties
- The release states approximately $131.9m of capital expenditures for the three months ended June 30, 2026, but the six-month cash flow statement shows only $111.785m of specialty rental asset purchases plus $5.624m of property, plant and equipment purchases. The release does not reconcile the quarterly capital expenditure figure to the cash flow statement, so whether the $131.9m is accrual-based, includes the $34.093m of other investing activities, or is defined differently cannot be established from this document.
- The $85.218m six-month favorable swing in operating assets and liabilities is the single largest driver of the $111.020m operating cash flow. The release attributes it to advance payments from customers but does not size that component, so the recurring portion of the cash flow is unknown.
- Prior guidance ranges are not restated in the release. The 11% and 13% raises are the company's own characterization and cannot be recomputed from this document.
- The 2027 exit targets of over $700m annualized revenue and over $260m annualized Adjusted EBITDA imply an Adjusted EBITDA margin above 37%, against guided 2026 margins of roughly 21% at the midpoint. The release does not bridge that margin expansion beyond asserting scale and unit economics.
- The over $1.4bn of contract awards is stated as a cumulative multi-year value with no disclosed contract term, ramp schedule, minimum-versus-variable split, or per-bed economics, so the revenue timing cannot be derived.
- Other non-current liabilities rose $88.445m over six months with no line-item explanation in the release; the composition of that increase is not disclosed.
- Other investing activities of $(34.093)m in the six-month period are unexplained in the release.
- The Government segment contract is described in the risk factors as terminable for convenience, and the company flags transitional network-optimization costs there over the balance of 2026 without sizing them.
- Total available liquidity of approximately $141m is stated as of June 30, 2026, before the July 24, 2026 refinancing; the release does not state pro forma liquidity under the new $660m facility.
- WHS average utilized beds are given as surpassing 4,000 for the quarter, but the release does not state WHS utilization or ADR, so segment unit economics cannot be computed the way they can for HFS - South.
Market context
- API Ninjas price snapshot for TH: $16.07 on NASDAQ with volume of 1,975,724, timestamped 2026-08-10T22:42:55Z. That is after the 20:00Z regular-session close on the day of the release. It is a single quote from one source, not an exchange-official close and not a measured intraday reaction, so no percentage move is characterized here.
- The release was published pre-market on August 10, 2026; the Quartr source PDF carries a 2026-08-10 11:04:19 timestamp, ahead of the 13:00Z (8:00 a.m. Central) conference call.
Source limitations
- Every displayed actual comes from Quartr earnings release document 3688167. The consolidated statements of comprehensive loss (page 10), condensed balance sheet data (page 11), condensed cash flow data (page 12), and the three non-GAAP reconciliations (pages 13 through 15) were read directly. The separate quarterly report document 3688165 attached to this event was not read.
- The source PDF renders the four-column income statement and the reconciliation tables in a merged layout in which column headers and the prior-year column bleed into adjacent rows. Column assignment was therefore verified by footing every subtotal within its own column: revenue components sum to total revenue in all four columns; total revenue less the three cost lines equals gross profit in all four columns; gross profit less SG&A, other depreciation and amortization, and other expense equals operating loss in all four columns; and net loss less noncontrolling interest equals net loss attributable to common stockholders in all four columns. The same check was applied to the balance sheet (current asset, total asset, current liability, total liability and equity subtotals all foot in both columns), the cash flow statement (operating, investing and financing sections each foot to the stated totals and to the change in cash in both columns), and the EBITDA and adjusted gross profit reconciliations (each bridges from net loss or gross profit to the stated total in all four columns).
- Loss per share was independently confirmed: $(9,035)k over 100,214,415 basic and diluted shares gives $(0.090) for the quarter, and $(21,954)k over 100,073,385 shares gives $(0.219) for the half, matching the printed $(0.09) and $(0.22).
- API Ninjas supplied only the consensus estimates. Its row for TH is dated 2026-08-10, matching the Quartr event date exactly, and carries fiscal_year 2026 and fiscal_quarter 2, which agrees with the Quartr fiscal period of Q2 2026. The row carried no actual revenue or EPS.
- EPS basis: the company reports a single basic-and-diluted GAAP loss per share and presents no adjusted EPS measure, so GAAP basic and diluted is the only available basis and no ladder choice arose. The basis is confirmed against the provider's own history: its Q2 2025 actual EPS of $(0.15) equals the company's reported Q2 2025 basic and diluted loss per share of $(0.15), and its Q2 2025 actual revenue of $61,606,000 equals the company's reported $61,606k.
- A second API Ninjas row for TH dated 2026-08-06 carries the identical $79,296,400 revenue and $(0.106) EPS estimates. It does not match the Quartr event date and was not used; because the estimates are identical, this does not affect the scorecard.
- Segment adjusted gross profit is a non-GAAP measure defined by the company as gross profit plus depreciation of specialty rental assets, loss on impairment, and certain severance costs. The four segment adjusted gross profit figures sum to the consolidated $33,215k, which foots to the consolidated reconciliation on page 13.
- Full-year guidance, the $1.4bn contract award figure, the 9,000-bed and 20,000-bed pipeline figures, the $141m liquidity figure, the 0.6x net leverage ratio, the $660m ABL facility terms, and the $131.9m quarterly capital expenditure figure are all narrative disclosures from pages 1 through 5 of the release and are not reconciled to the financial statements within the document.
- The price snapshot is a single API Ninjas quote timestamped after the regular-session close, not an exchange-official close, and is presented as such.