Vestis Corp

At a strategic level, we are allocating capital toward the highest return, highest impact areas of our business, while continuing to reduce debt in support of improved balance sheet optionality, focusing on fundamentals that drive long term value creation.

SEC original ↗Vestis Corp — Earnings release (8-K exhibit)EX-99May 12, 2026

Adjusted EBITDA* for the fiscal second quarter of 2025 included an adjustment of $15 million for bad debt expenses which the Company was able to exclude solely for financial covenant purposes under the credit agreement.

SEC original ↗Vestis Corp — Earnings release (8-K exhibit)EX-99May 12, 2026

Excluding the bad debt expense adjustment, Covenant Adjusted EBITDA* was $62.6 million and Covenant Adjusted EBITDA Margin* was 9.4% in the fiscal second quarter of 2025, resulting in an increase of $11.9 million or 19% year-over-year.

SEC original ↗Vestis Corp — Earnings release (8-K exhibit)EX-99May 12, 2026

During the fiscal second quarter, the Company utilized Free Cash Flow* and proceeds from the sale of non-operating properties to repay $34.0 million of debt, including $19.0 million on its revolving credit facility and $15.0 million of principal on its term loans.

SEC original ↗Vestis Corp — Earnings release (8-K exhibit)EX-99May 12, 2026

GAAP, but in this release and the non-GAAP reconciliations that follow, Vestis also uses the following non-GAAP measures Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income (Loss), Adjusted Basic Earnings Per Share ( EPS ), Adjusted Diluted EPS, Free Cash Flow, Adjusted Free Cash Flow, Net Debt, Net Leverage Ratio, Covenant Adjusted EBITDA, Covenant Adjusted EBITDA Margin, Trailing Twelve Months Covenant Adjusted EBITDA, Adjusted Operating Expenses (presented solely in the calculations of Cost Per Pound and Operating Leverage), and Investments in Capital Assets.

SEC original ↗Vestis Corp — Earnings release (8-K exhibit)EX-99May 12, 2026

Adjusted EBITDA and Adjusted EBITDA Margin Adjusted EBITDA represents net income adjusted for provision for income taxes interest expense, net and depreciation and amortization (EBITDA), further adjusted for share-based compensation expense severance business transformation costs separation related charges securitization fees loss (gain) on sale of equity investments third party debt amendment fees legal reserves and settlements gains, losses, and other items impacting comparability.

SEC original ↗Vestis Corp — Earnings release (8-K exhibit)EX-99May 12, 2026

Our focus on service, operating performance, and cost discipline is delivering results, culminating in a return to profitable growth.

SEC original ↗Vestis Corp — Earnings release (8-K exhibit)EX-99May 12, 2026

We generated strong cash flow during the second quarter, further strengthening our financial flexibility and supporting our deleveraging priorities, continued Barber.

SEC original ↗Vestis Corp — Earnings release (8-K exhibit)EX-99May 12, 2026

At a strategic level, we are allocating capital toward the highest return, highest impact areas of our business, while continuing to reduce debt in support of improved balance sheet optionality, focusing on fundamentals that drive long term value creation.

SEC original ↗Vestis Corp — Earnings release (8-K exhibit)EX-99May 12, 2026

Strategic Business Transformation During its fiscal first quarter of 2026, the Company launched a strategic business transformation plan ( the Plan ) designed to make the Company more customer focused, agile and efficient while positioning it for long-term profitable growth.

SEC original ↗Vestis Corp — Earnings release (8-K exhibit)EX-99May 12, 2026

The Plan is structured around three strategic priorities Operational Excellence, Commercial Excellence and Asset Network Optimization.

SEC original ↗Vestis Corp — Earnings release (8-K exhibit)EX-99May 12, 2026

These forward-looking statements are subject to risks and uncertainties that may change at any time, and actual results or outcomes may differ materially from those that we expected.

SEC original ↗Vestis Corp — Earnings release (8-K exhibit)EX-99May 12, 2026

Legal Proceedings 45 Item 1A.

SEC original ↗Vestis Corp — 10-Q Quarterly report10-QAug 11, 2026

Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict.

SEC original ↗Vestis Corp — 10-Q Quarterly report10-QAug 11, 2026

Although we believe that the expectations reflected in any forward-looking statements we make are based on reasonable assumptions, we can give no assurance that these expectations will be met and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties.

SEC original ↗Vestis Corp — 10-Q Quarterly report10-QAug 11, 2026

The Company utilizes key estimates in preparing the financial statements including revenue recognition, litigation and claims, environmental estimates, goodwill, intangibles, allowance for credit losses, inventories and rental merchandise in service, costs to obtain a contract, insurance reserves, income taxes and long-lived assets.

SEC original ↗Vestis Corp — 10-Q Quarterly report10-QAug 11, 2026

The determination of fair value for the reporting units includes assumptions, which are considered Level 3 inputs, that are subject to risks and uncertainties.

SEC original ↗Vestis Corp — 10-Q Quarterly report10-QAug 11, 2026