Key Highlights

  • Revenue of USD 203.04 million compares with an estimate of USD 197.14 million and USD 224.9 million last year.
  • Diluted EPS was USD 0.24 against an estimate of USD 0.08, while adjusted EPS was USD 0.56 versus USD 0.36.
  • Consolidated Adjusted EBITDA reached a third quarter record of USD 35.9 million, or 17.7% of revenue, against 15.0%.
  • Operating cash flow was USD 40.9 million, and the Leverage Ratio stood at 2.9x against 3.2x at June 30.

What happens to profit when a very large emergency response Job drops out of the year-ago comparison? Onterris, Inc. (NYSE:ONT) reported on its third quarter ended September 30, 2026. Revenue was USD 203.04 million, against an estimate of USD 197.14 million and USD 224.9 million in the prior-year quarter. Diluted EPS was USD 0.24, against an estimate of USD 0.08 and USD 0.21 a year earlier.

Lower Recovery Revenue, Higher Operating Income

Management named the largest component of the lower top line. A single large environmental event generated USD 45.4 million of revenue in the prior-year quarter, and nothing comparable appeared this year. Excluding that event, the company stated, consolidated revenue increased approximately 13.1%. Net Service Revenue, a non-GAAP measure, was USD 162.5 million against USD 160.5 million.

Income from operations was USD 12.3 million, against USD 9.9 million a year ago. The company credited project mix, operating efficiencies and lower amortization and corporate costs. Net Income was USD 9.0 million against USD 8.4 million, and adjusted net income, a non-GAAP measure, was USD 21.3 million, or USD 0.56 per diluted share, against USD 14.2 million, or USD 0.36.

Two Segments Moved in Different Directions

Consulting and Treatment revenue was USD 141.98 million against USD 161.93 million, with segment adjusted EBITDA of USD 30.84 million against USD 29.85 million. Measurement and Analysis revenue was USD 61.06 million against USD 62.96 million, and its segment adjusted EBITDA was USD 15.96 million against USD 17.28 million.

At the consolidated level, Consolidated Adjusted EBITDA was USD 35.9 million against USD 33.7 million, a third quarter record. The Margin on revenue was 17.7% against 15.0%, which the company also described as a quarterly record. Chief Executive Vijay Manthripragada said growth in core consulting and water treatment services reinforces the underlying Demand for the company's solutions.

Leverage, Buybacks and Tuck-In Deals

Operating cash flow was USD 40.9 million against USD 28.1 million, an increase the company put at 46%. For the nine months, Operating Cash Flow was USD 35.4 million against USD 55.5 million, which the company linked to USD 16.0 million of incremental first quarter Bonus payments.

The leverage ratio under the 2025 Credit Facility was 2.9x at September 30, against 3.2x at June 30. Total available Liquidity was USD 192.0 million, made up of USD 20.1 million of cash and USD 171.9 million of revolver availability. Over the nine months the company repurchased common stock for USD 29.99 million, covering 1.6 million shares. It also completed three small tuck-in acquisitions in the second half, and management said it intends to continue acquiring while holding to its leverage goals.

A board-led strategic review announced on August 5, 2026 is ongoing. The company said it has engaged with a number of strategic and financial parties and that the board has set no timetable.

Metrics to Track

Operating cash flow of USD 40.9 million sits alongside a 2.9x leverage ratio, USD 192.0 million of liquidity and a 17.7% Consolidated Adjusted EBITDA margin.

Management reiterated guidance of operating cash flow of USD 30.0 million to USD 40.0 million in the fourth quarter of 2026 and conversion of 60.0% of full-year Consolidated Adjusted EBITDA into operating cash flow. Its year-end 2026 leverage ratio guidance is approximately 2.5x, which includes USD 13.9 million for recent acquisitions, USD 30.0 million of share repurchases and USD 15.2 million of contingent consideration payments. The chief executive named compound annual growth of approximately 15% in revenue and approximately 25% in Adjusted EBITDA through 2030. A call is scheduled for November 5, 2026.