1 Refer to the “2026 Full Year Guidance” and “Non-GAAP Financial Measures” sections below for
additional information regarding forward-looking non-GAAP financial measures.
Exhibit 99.1
Alliance Reports Fourth Quarter and Full Year 2025 Results
• Full year net revenues of $1.7 billion, up 13% versus prior year
• Full year net income of $102 million, up 3% versus prior year; with net income margin of 6.0%
• Full year Adjusted EBITDA of $436 million, up 14% versus prior year, with record Adjusted
EBITDA Margin of 25.5%
• Q4 revenue of $435 million, up 10% versus prior year
• Net Leverage reduced by 2.2x to 2.8x in a single year through operations and IPO proceeds
• Introduces 2026 annual guidance: revenue growth of +5 to 7%, Adjusted EBITDA growth of +6
to 8%, continued margin expansion and deleveraging to the low 2x range Net Leverage1
___________________________________________________________________
Ripon, WI, March 12, 2026 – Alliance Laundry Systems (NYSE: ALH) (“Alliance” or the
“Company”), the global leader in commercial laundry equipment, today announced results for its
fourth quarter and full year ended December 31, 2025, and introduced its 2026 annual guidance.
“2025 was a landmark year for Alliance. Our full year and fourth quarter results demonstrated our
ability to deliver very strong outcomes driven by our market leading position and commitment to
operational excellence as we serve customers across this resilient, essential industry,” said Michael
Schoeb, CEO of Alliance Laundry. “We delivered our second consecutive year of double-digit growth
on both the top and bottom line, significantly strengthened our balance sheet, and continued to invest
in the innovation and market expansion that we believe will drive our next chapter of growth.”
FULL YEAR 2025 CONSOLIDATED RESULTS
Net revenues increased 13% to $1.7 billion, compared to $1.5 billion in the prior year. The increase
was driven by both strong volume performance and mid-single digit price increases. Growth was
broad-based across both the North America and International reportable segments, with strong
performance across the Vended, On-Premise Laundry, and Commercial-In-Home end markets. Full
year net revenue growth was driven predominantly by volume, which contributed roughly 70% of the
increase, with price realization accounting for the remainder, a mix that reflects the strength of
underlying demand and the ongoing competitive differentiation of Alliance’s total cost of ownership
value proposition.
Gross profit increased 16% to $642 million, compared to $551 million in the prior year. Gross margin
expanded 100 basis points to 37.6%, driven by cost-down initiatives, operational leverage, and
disciplined pricing, with the Company’s local-for-local manufacturing strategy providing structural
tariff protection.
Net income increased 3% to $102 million, compared to $98 million in the prior year. Adjusted net
income increased 11% to $185 million versus the prior year driven by higher earnings. Net income
margin was 6.0% in the current year.
Exhibit 99.1
Adjusted EBITDA increased 14% to $436 million, compared to $383 million in the prior year, driven
by volume gains, cost-down initiatives, and pricing actions that more than offset input cost increases.
This improvement was achieved while maintaining disciplined operating cost management and
continuing to invest strategically in innovation and public company infrastructure. Adjusted EBITDA
margin expanded to a record 25.5%, demonstrating the Company’s ability to drive profitable growth.
FOURTH QUARTER 2025 CONSOLIDATED RESULTS
Net revenues increased 10% to $435 million compared to $395 million in the prior year quarter. This
result reinforces Alliance’s pattern of durable, demand-driven growth and the resilience of its end-
market positioning.
Gross profit increased 16% to $161 million, or 37.0% of revenue, an increase of 190 basis points of
margin expansion versus the prior year quarter. The improvement reflects the combined benefit of
volume leverage and cost-down initiatives, with pricing actions largely offsetting the approximate $5
million tariff impact in the quarter.
Net income decreased 44% to $21 million compared to $37 million in the prior year quarter, primarily
due to a one-time share based compensation expense associated with the Company’s IPO, partially
offset by significantly lower interest expense following debt reduction actions. Adjusted Net Income
increased 18% to $49 million versus $41 million in the prior year quarter, reflecting strong operating
performance including significantly lower interest expense.
Adjusted EBITDA increased 17% to $107 million, or 24.5% of revenue, an increase of 140 basis
points versus the prior year quarter. Revenue grew 10% while Adjusted EBITDA grew 17% over the
prior year quarter, demonstrating the operating leverage inherent in Alliance’s business model and its
continuing focus on driving profitable growth.
FULL YEAR 2025 RESULTS BY REPORTABLE SEGMENT
North America revenue increased 14% to $1.3 billion, compared to $1.1 billion in the prior year, with
double-digit growth across the Vended and Commercial-in-Home end markets and high single digit
growth in the On-Premise market. Equipment revenue increased 15% year over year, driven by
particularly strong performance in the Vended and Commercial-In-Home end markets. North America
Adjusted EBITDA increased 14% to $361 million, compared to $318 million in the prior year.
Adjusted EBITDA margin was 28.5%. The Company’s local-for-local manufacturing strategy
provided significant structural protection from tariffs, with approximately $12 million in cost increase
largely offset on both a dollar and margin basis through pricing actions.
International revenue increased 10% to $440 million, compared to $399 million in the prior year
driven by strong performance in Europe and Asia Pacific, where expanding Vended end markets are
driving growth. International Adjusted EBITDA increased 17% to $121 million, compared to $103
million in the prior year. Adjusted EBITDA margin expanded 160 basis points to 27.4%, driven by
Speed Queen licensed stores in Europe, first-mover advantage in nascent vended markets across Asia
and Latin America, and continued focus on profitable growth across all regions.
FOURTH QUARTER 2025 RESULTS BY REPORTABLE SEGMENT
North America revenue increased 9% to $317 million in the fourth quarter, with Adjusted EBITDA
growing 15% to $88 million, and margin expanding to 27.9%. Growth was broad-based across all end
markets, with pricing actions largely offsetting modest tariff impacts and margin expansion driven by
cost-down initiatives and strong incremental margins on volume growth.
International revenue increased 12% to $118 million, with Adjusted EBITDA growing 25% to $29
million, and margin expanding 260 basis points to 24.8%. Revenue growth was driven by particularly
strong performance in Europe, underpinned by the continued success of Speed Queen Licensed Stores,
and solid demand across Asia Pacific markets.
CASH FLOW AND BALANCE SHEET
Operating cash flow for the year increased 46% to $212 million, versus $145 million in 2024. This
robust cash generation reflects the Company’s business model, effective working capital management,
and strong earnings growth.
The Company significantly strengthened its balance sheet in 2025, reducing Net Leverage from 5.0x to
2.8x, a reduction of 2.2x in a single year. Debt declined to $1.4 billion from $2.1 billion at the start of
the year, with cash of $123 million resulting in Net Debt of $1.2 billion at year end. Approximately
one full turn of that deleveraging was funded entirely by cash generated from operations, with the
balance driven by proceeds from the October 2025 IPO. This demonstrates the Company’s strong free
cash flow generation capability and its ability to delever independent of capital markets activity.
Capital expenditures were $54 million as the Company invested across its global manufacturing
facilities. This represents approximately 3% of revenue, directed at capacity expansion, automation,
new product development, plus expanded testing capabilities in Thailand and the Czech Republic.
FULL YEAR 2025 BUSINESS HIGHLIGHTS
Innovation Leadership – Alliance continued to invest at scale in 2025:
•Extended ProCapture lint filtration technology across a broader range of products
•Launched the T55 stack tumbler, the industry’s largest at 55 pounds
•Introduced Scan-Pay-Wash, the industry’s first app-less cashless payment solution
•Launched the Stax-X stacked washer-dryer unit for laundromats, the first product fully
developed at Alliance’s Thailand engineering facility
•Conducted over five million hours of physical product testing in 2025, reflecting the depth of
investment and rigor behind innovation pipeline
Commercial and Operational Execution – Alliance delivered strong commercial and operational
results across products, end markets and geographies in 2025:
•Europe continued to gain traction, contributing to international growth and further establishing
our brands’ premium positioning in key markets
•North America demand for commercial-grade product in the home accelerated meaningfully,
with Commercial-In-Home revenue growing over 20%
•Disciplined pricing actions largely offset tariff headwinds while preserving margins and cost-
down initiatives contributed to 80 basis points of gross margin expansion
•Acquisition of Metropolitan Laundry Machinery Sales expanded Alliance’s direct distribution
footprint in the high-density Northeast market
•Delivered approximately $46 million in annualized interest savings through a combination of
debt paydown and term loan repricing, meaningfully improving ongoing cost of capital and
financial flexibility
2026 FULL YEAR GUIDANCE
The Company’s outlook includes Adjusted EBITDA and Net Leverage, which are non-GAAP
measures. The Company does not provide certain estimated future results for Adjusted EBITDA and
Net Leverage on a GAAP basis because the Company is unable to predict, with reasonable certainty,
certain items that are excluded from Adjusted EBITDA, including but not limited to restructuring and
acquisition-related charges, non-cash asset impairment charges and gains or losses from dispositions
and foreign exchange gains/losses on intercompany loans. These items are uncertain and will depend
on several factors, including industry conditions, and could be material to the Company’s results
computed in accordance with GAAP. The Company has not provided reconciliations between the
Company’s 2026 guidance and the most directly comparable GAAP measures because it would be too
difficult to prepare a reliable U.S. GAAP quantitative reconciliation without unreasonable effort.
The Company is introducing its first full-year annual guidance. In 2026, Alliance expects:
2026 Guidance | |
Revenue Growth | +5% to 7% |
Adjusted EBITDA Growth | +6% to 8% |
Net Leverage | Low 2x by end of year |
Capex (% of Revenue) | ~3% |
Effective Tax Rate | ~23.5% |
Interest Expense | ~$85 million |
Diluted Share Count | ~205 million |
CONFERENCE CALL INFORMATION
Alliance will host a conference call to discuss these results at 8:00 a.m. Eastern Time today, March 12,
2026.
To listen to the conference call, a live audio webcast will be available on Alliance’s Investor Relations
website at https://ir.alliancelaundry.com/news-events/ir-calendar. A replay of the webcast will be
available after the call.
To participate in the conference call, analysts and investors can dial 1 (800) 267-6316 and
international participants can dial 1 (203) 518-9783. The Conference ID is ALHQ4FY25. Participants
should dial in at least 10 minutes prior to the call.
ABOUT ALLIANCE LAUNDRY
Alliance Laundry makes the world cleaner as a provider of the highest quality commercial laundry
systems. Our laundry solutions are available under five respected brands, sold and supported by a
global network of select distributors. We serve approximately 150 countries with a team of more than
4,000 employees. Our brands include Speed Queen®, UniMac®, Huebsch®, Primus® and IPSO®.
Together, they present a full line of commercial washing machines, dryers, and ironers (with load
capacities from 20–400 lb. or 9–180 kg.) and support service. You can also enjoy the superior wash
and fabric care of commercial-grade laundry equipment in your home through our legendary Speed
Queen® washers and dryers.
For more information, visit www.alliancelaundry.com.
NON-GAAP FINANCIAL MEASURES
We regularly review non-GAAP measures to evaluate our business, measure our performance and
manage our operations, including identifying trends affecting our business, formulating business plans
and making strategic decisions. We believe that non-GAAP measures provide an additional way of
viewing aspects of our operations that, when viewed together with our GAAP results, provide a more
complete understanding of our results of operations and the factors and trends affecting our business.
These non-GAAP financial measures are also used by our management to evaluate financial results
and to plan and forecast future periods. Non-GAAP financial measures should be considered a
supplement to, and not a substitute for, or superior to, the corresponding measures calculated in
accordance with GAAP. Non-GAAP financial measures used by us may differ from the non-GAAP
measures used by other companies, including our competitors.
“Adjusted EBITDA” represents Net income before provision for income taxes, interest expense,
depreciation and amortization. Adjusted EBITDA is also adjusted for items that management excluded
in analyzing the segments’ operating performance, such as refinancing and debt related costs, share-
based compensation, strategic transaction costs, foreign exchange on intercompany loans and other
non-recurring items which management believes are not indicative of the Company’s ongoing
operating performance. “Adjusted EBITDA Margin” represents Adjusted EBITDA divided by Net
revenues.
“Adjusted Net Income” represents Net income adjusted to exclude certain expenses not representative
of our ongoing operations and other charges. These adjustments include, but are not limited to,
refinancing and debt related costs, share-based compensation, strategic transaction costs, intangible
amortization, foreign exchange on intercompany loans and other non-recurring items.
“Net Debt” represents our total debt less Cash and cash equivalents.
“Net Debt to Adjusted EBITDA” or “Net Leverage” represents total debt less Cash and cash
equivalents divided by Adjusted EBITDA for the relevant period.
SEGMENT INFORMATION
Our business is organized into two reportable segments, North America and International. The
Company uses Segment net revenues, Segment Adjusted EBITDA and Segment Adjusted EBITDA
Margin as its measures of performance. The Company allocates certain costs including manufacturing
variances, customer support expenses and selling and general expenses which are incurred in our
global operations to the reportable segments in determining Segment Adjusted EBITDA.
We define “Segment Adjusted EBITDA” as, on a segment basis, net income excluding interest
income/expense, income taxes, depreciation and amortization. Segment Adjusted EBITDA is also
adjusted for the discrete items that management excluded in analyzing the segments’ operating
performance, such as refinancing and debt related costs, share-based compensation, strategic
transaction costs, foreign exchange on intercompany loans and other non-recurring items which
management believes are not indicative of the Company’s ongoing operating performance. Segment
Adjusted EBITDA is a measure of operating performance of our reportable segments and may not be
comparable to similar measures reported by other companies.
FORWARD-LOOKING STATEMENTS
This press release includes “forward-looking statements” within the meaning of the “safe harbor”
provisions of the United States Private Securities Litigation Reform Act of 1995. In some cases, you
can identify these forward-looking statements by the use of terms such as “expect,” “will,” “continue,”
or similar expressions, and variations or negatives of these words, but the absence of these words does
not mean that a statement is not forward-looking. Forward-looking statements represent our
management’s beliefs and assumptions only as of the date of this press release. You should read this
press release with the understanding that our actual future results may be materially different from
what we expect. All statements other than statements of historical fact are statements that could be
deemed forward-looking statements, which include but are not limited to: expectations relating to
revenues and other financial or business metrics; statements regarding the Company’s plans, guidance,
growth, execution, costs and cost savings and any other statements of expectation or belief. These
statements are subject to known and unknown risks, uncertainties and other factors that may cause our
actual results, levels of activity, performance or achievements to differ materially from results
expressed or implied in this press release. Such risk factors include, but are not limited to, those related
to: the high degree of competition in the markets in which we operate; our reliance on the performance
of distributors, route operators, suppliers, retailers and servicers; our ability to achieve and maintain a
high level of product and service quality; fluctuations in the cost and availability of raw materials; our
exposure to international markets, particularly emerging markets; our exposure to costs and difficulties
of acquiring and integrating complementary businesses and technologies; and our exposure to
worldwide economic conditions and potential global economic downturns.
Additional information concerning these and other risks and uncertainties are contained in the section
entitled “Risk Factors” in the Company’s final prospectus filed October 9, 2025, which forms part of
the Registration Statement on Form S-1 declared effective as of September 30, 2025. Additional
information will be made available in our quarterly reports on Form 10-Q, and other filings and reports
that we may file from time to time with the SEC. Except as required by law, we assume no obligation,
and do not intend to, update these forward-looking statements, or to update the reasons actual results
could differ materially from those anticipated in these forward-looking statements, even if new
information becomes available in the future.
ALLIANCE LAUNDRY SYSTEMS CONTACTS
Investor Contact:
Bob Calver
Vice President, Investor Relations
Media Contact:
Randy Radtke
Senior Manager of Content and Creative Services
ALLIANCE LAUNDRY HOLDINGS INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited)
(in thousands, except per share amounts)
Three Months Ended December 31, | Year Ended December 31, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Net revenues: | |||||||
Equipment, service parts and other | $422,215 | $383,106 | $1,659,680 | $1,459,746 | |||
Equipment financing | 12,659 | 12,030 | 49,557 | 48,694 | |||
Net revenues | 434,874 | 395,136 | 1,709,237 | 1,508,440 | |||
Costs and expenses: | |||||||
Cost of sales | 263,973 | 244,682 | 1,028,073 | 914,655 | |||
Cost of sales - related parties | 2,290 | 1,574 | 7,322 | 6,218 | |||
Equipment financing expenses | 7,670 | 10,319 | 31,738 | 36,316 | |||
Gross profit | 160,941 | 138,561 | 642,104 | 551,251 | |||
Selling, general, and administrative expenses | 97,345 | 70,678 | 324,458 | 266,444 | |||
Selling, general, and administrative expenses - related parties | 55 | 75 | 280 | 300 | |||
Other costs | — | 494 | — | 494 | |||
Total operating expenses | 97,400 | 71,247 | 324,738 | 267,238 | |||
Operating income | 63,541 | 67,314 | 317,366 | 284,013 | |||
Interest expense, net | 29,261 | 31,231 | 150,501 | 132,001 | |||
Other expenses, net | 2,317 | (13,734) | 28,831 | 23,376 | |||
Other expenses, net - related parties | — | 5,187 | — | 5,187 | |||
Income before taxes | 31,963 | 44,630 | 138,034 | 123,449 | |||
Provision for income taxes | 11,367 | 7,566 | 36,279 | 25,130 | |||
Net income | $20,596 | $37,064 | $101,755 | $98,319 | |||
Comprehensive income: | |||||||
Net income | $20,596 | $37,064 | $101,755 | $98,319 | |||
Other comprehensive income/(loss): | |||||||
Foreign currency translation adjustment | (33) | (29,207) | 59,122 | (27,439) | |||
Change in pension liability and other post- retirement benefits, net of taxes of $0 and $0 at December 31, 2025 and 2024, respectively | (192) | 71 | (192) | 71 | |||
Total other comprehensive (loss)/income | (225) | (29,136) | 58,930 | (27,368) | |||
Comprehensive income | $20,371 | $7,928 | $160,685 | $70,951 | |||
Net income per share attributable to common stockholders: | |||||||
Basic | $0.11 | $0.22 | $0.57 | $0.58 | |||
Diluted | $0.10 | $0.21 | $0.56 | $0.56 | |||
Weighted average number of common shares outstanding | |||||||
Basic | 195,038 | 170,638 | 177,002 | 170,591 | |||
Diluted | 201,085 | 174,579 | 181,443 | 174,331 | |||
ALLIANCE LAUNDRY HOLDINGS INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands, except share and per share amounts)
December 31, 2025 | December 31, 2024 | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | $123,102 | $154,682 | |
Restricted cash | 3,602 | 6,401 | |
Restricted cash - for securitization investors | 22,999 | 26,959 | |
Accounts receivable (net of allowance for credit losses of $3,021 and $2,663 at December 31, 2025 and 2024, respectively) | 113,651 | 92,150 | |
Inventories, net | 146,039 | 133,494 | |
Inventories, net - related parties | 821 | 989 | |
Accounts receivable, net - restricted for securitization investors | 141,973 | 130,060 | |
Equipment financing receivables, net | 2,822 | 4,600 | |
Equipment financing receivables, net - restricted for securitization investors | 92,011 | 88,288 | |
Prepaid expenses and other current assets | 28,862 | 30,534 | |
Total current assets | 675,882 | 668,157 | |
Equipment financing receivables, net | 4,913 | 7,633 | |
Property, plant, and equipment, net | 265,250 | 248,341 | |
Operating lease right-of-use assets | 20,741 | 17,080 | |
Equipment financing receivables, net - restricted for securitization investors | 470,408 | 417,672 | |
Deferred income tax asset | 3,169 | 3,220 | |
Debt issuance costs, net | 3,461 | 2,793 | |
Goodwill | 684,230 | 666,580 | |
Intangible assets, net | 754,737 | 793,666 | |
Other long-term assets | 3,097 | 6,963 | |
Total assets | $2,885,888 | $2,832,105 | |
Liabilities and Stockholders' Equity/(Deficit) | |||
Current liabilities: | |||
Current portion of long-term debt | $113 | $20,896 | |
Accounts payable | 128,662 | 141,808 | |
Accounts payable - related parties | 1,852 | 1,338 | |
Asset backed borrowings - owed to securitization investors | 194,180 | 170,862 | |
Current operating lease liabilities | 5,927 | 5,502 | |
Other current liabilities | 153,592 | 138,259 | |
Total current liabilities | 484,326 | 478,665 | |
Long-term debt, net | 1,354,636 | 2,034,545 | |
Asset backed borrowings - owed to securitization investors | 424,406 | 382,910 | |
Deferred income tax liability | 169,355 | 171,103 | |
Long-term operating lease liabilities | 15,745 | 12,549 | |
Other long-term liabilities | 45,302 | 29,661 | |
Total liabilities | 2,493,770 | 3,109,433 | |
Stockholders' equity/(deficit): | |||
Redeemable preferred stock, $0.01 par value, 100,000,000 shares authorized, no shares issued or outstanding | — | — | |
Common stock, $0.01 par value, 2,000,000,000 shares authorized, 197,532,147 and 189,609,192 issued, respectively, and 197,532,147 and 125,290,718, outstanding, respectively | 1,975 | 1,896 | |
Additional paid-in capital | 509,369 | 189,911 | |
(Accumulated deficit)/retained earnings | (176,404) | 31,527 | |
Accumulated other comprehensive income/(loss) | 57,178 | (1,752) | |
Treasury stock, at cost, 0 and 64,318,474 shares, respectively | — | (498,910) | |
Total stockholders' equity/(deficit) | 392,118 | (277,328) | |
Total liabilities and stockholders' equity/(deficit) | $2,885,888 | $2,832,105 |
ALLIANCE LAUNDRY HOLDINGS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
Year Ended December 31, | |||
2025 | 2024 | ||
Cash flows from operating activities: | |||
Net income | $101,755 | $98,319 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 93,701 | 90,169 | |
Amortization and extinguishment of debt issuance costs | 4,528 | 5,559 | |
Amortization of original issue discount | 6,202 | 2,620 | |
Non-cash interest expense/(income) | 10,299 | (700) | |
Non-cash (gain)/loss on commodity & foreign exchange contracts, net | (751) | 657 | |
Non-cash foreign exchange loss/(gain), net | 25,152 | (4,654) | |
Non-cash stock-based compensation | 19,519 | 3,263 | |
Non-cash (gain)/loss for pension and post-retirement benefit plans | (192) | 71 | |
Loss on sale of property, plant, and equipment | 1,291 | 318 | |
Provision for credit losses | 3,622 | 7,145 | |
Deferred income taxes | (3,340) | (31,583) | |
Changes in assets and liabilities, net of the effects of acquisitions: | |||
Accounts and equipment financing receivables, net | (9,801) | 639 | |
Accounts receivable - restricted for securitization investors | (12,227) | 9,071 | |
Inventories, net | (6,494) | 5,776 | |
Inventories, net - related party | 168 | 55 | |
Equipment financing receivables, net - restricted for securitization investors | (32,566) | (35,065) | |
Other assets | 3,382 | 362 | |
Accounts payable | (14,012) | 5,755 | |
Accounts payable - related parties | 514 | (171) | |
Other liabilities | 20,935 | (12,146) | |
Net cash provided by operating activities | 211,685 | 145,460 | |
Cash flows from investing activities: | |||
Capital expenditures | (53,668) | (43,485) | |
Acquisition of businesses, net of cash acquired | (12,619) | (27,948) | |
Proceeds on disposition of assets | 292 | 2,429 | |
Originations of equipment financing receivables, net - restricted for securitization investors | (102,344) | (92,092) | |
Collections of equipment financing receivables, net - restricted for securitization investors | 76,692 | 73,336 | |
Net cash used in investing activities | (91,647) | (87,760) | |
Cash flows from financing activities: | |||
Payments on revolving line of credit borrowings | — | (5,674) | |
Proceeds from long-term borrowings | — | 2,064,625 | |
Payments on long-term borrowings | (710,000) | (1,268,000) | |
Cash paid for debt establishment and amendment fees | (1,967) | (2,389) | |
Proceeds from initial public offering, net of issuance costs | 497,032 | — | |
Increase in asset backed borrowings owed to securitization investors | 219,829 | 204,434 | |
Decrease in asset backed borrowings owed to securitization investors | (155,014) | (165,898) | |
Dividends paid | — | (265,940) | |
Return of capital paid | — | (634,060) | |
Repurchase of common stock | (6,205) | (1,445) | |
Taxes paid related to net share settlement of stock options | (7,782) | (1,138) | |
Net proceeds from stock options exercised | 5,697 | 111 | |
Proceeds from common stock issuance under employee purchase plan | 500 | — | |
Net cash used in financing activities | (157,910) | (75,374) | |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (467) | (4,253) | |
(Decrease)/increase in cash, cash equivalents, and restricted cash | (38,339) | (21,927) | |
Cash, cash equivalents, and restricted cash at beginning of period | 188,042 | 209,969 | |
Cash, cash equivalents, and restricted cash at end of period | $149,703 | $188,042 | |
Reconciliation of cash, cash equivalents, and restricted cash to the Consolidated Balance Sheets: | |||
Cash and cash equivalents | 123,102 | 154,682 | |
Restricted cash | 3,602 | 6,401 | |
Restricted cash - for securitization investors | 22,999 | 26,959 | |
Total cash, cash equivalents, and restricted cash shown in the Statement of Cash Flows | $149,703 | $188,042 | |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | $122,182 | $146,660 | |
Cash paid for interest - to securitized investors | $31,696 | $34,313 | |
Cash paid for income taxes | $48,725 | $54,154 | |
Supplemental disclosure of investing and financing non-cash activities: | |||
Capital expenditures included in accounts payable | $3,211 | $6,292 |
ALLIANCE LAUNDRY HOLDINGS INC.
SEGMENT SUMMARY
The following table presents revenue by segment, Segment Adjusted EBITDA and Segment Adjusted
EBITDA Margin:
(Unaudited) | |||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||
(in thousands) | 2025 | 2024 | 2025 | 2024 | |||
North America | |||||||
Segment net revenues | 316,823 | 290,056 | 1,268,979 | 1,109,134 | |||
Segment adjusted EBITDA | 88,460 | 77,249 | 361,487 | 317,779 | |||
Segment adjusted EBITDA margin | 27.9% | 26.6% | 28.5% | 28.7% | |||
International | |||||||
Segment net revenues | 118,051 | 105,080 | 440,258 | 399,306 | |||
Segment adjusted EBITDA | 29,253 | 23,380 | 120,597 | 103,148 | |||
Segment adjusted EBITDA margin | 24.8% | 22.2% | 27.4% | 25.8% | |||
ALLIANCE LAUNDRY HOLDINGS INC.
RECONCILIATION SCHEDULES
Selected financial information for each segment is as follows:
(Unaudited) | |||||||||||
Three Months Ended December 31, 2025 | Three Months Ended December 31, 2024 | ||||||||||
(in thousands) | North America | International | Total | North America | International | Total | |||||
Net revenues | $316,823 | $118,051 | $434,874 | $290,056 | $105,080 | $395,136 | |||||
Cost of sales(1) | 199,617 | 73,168 | 186,719 | 69,076 | |||||||
Other segment items(2) | 28,746 | 15,630 | 26,088 | 12,624 | |||||||
Adjusted EBITDA | $88,460 | $29,253 | $117,713 | $77,249 | $23,380 | $100,629 | |||||
Reconciling items: | |||||||||||
Interest expense, net | (29,261) | (31,231) | |||||||||
Depreciation and amortization | (24,357) | (22,673) | |||||||||
Refinancing and debt related costs | (200) | (250) | |||||||||
Foreign exchange (loss)/gain on intercompany loans | (2,117) | 8,797 | |||||||||
Share-based compensation | (17,217) | (678) | |||||||||
Strategic transaction costs | (1,451) | (620) | |||||||||
Corporate and other | (11,147) | (9,344) | |||||||||
Income before taxes | $31,963 | $44,630 | |||||||||
(Unaudited) | |||||||||||
Year Ended December 31, 2025 | Year Ended December 31, 2024 | ||||||||||
(in thousands) | North America | International | Total | North America | International | Total | |||||
Net revenues | $1,268,979 | $440,258 | $1,709,237 | $1,109,134 | $399,306 | $1,508,440 | |||||
Cost of sales(1) | 791,853 | 271,485 | 700,743 | 254,043 | |||||||
Other segment items(2) | 115,639 | 48,176 | 90,612 | 42,115 | |||||||
Adjusted EBITDA | $361,487 | $120,597 | $482,084 | $317,779 | $103,148 | $420,927 | |||||
Reconciling items: | |||||||||||
Interest expense, net | (150,501) | (132,001) | |||||||||
Depreciation and amortization | (93,701) | (90,169) | |||||||||
Refinancing and debt related costs | (3,679) | (33,217) | |||||||||
Foreign exchange (loss)/gain on intercompany loans | (25,152) | 4,654 | |||||||||
Share-based compensation | (19,779) | (3,263) | |||||||||
Strategic transaction costs | (5,627) | (5,803) | |||||||||
Corporate and other | (45,611) | (37,679) | |||||||||
Income before taxes | $138,034 | $123,449 | |||||||||
(1)Consists of Cost of sales, Cost of sales - related parties and Equipment financing expenses.
(2)Other segment items for each reportable segment includes allocated engineering, sales and marketing, information technology,
and certain other overhead expenses.
The following table presents a reconciliation of Net income to the non-GAAP financial measure
adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) and Net
income margin to Adjusted EBITDA margin:
(Unaudited) | |||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||
(in thousands, except percentages) | 2025 | 2024 | 2025 | 2024 | |||
Net Income | $20,596 | $37,064 | $101,755 | $98,319 | |||
Provision for income taxes | 11,367 | 7,566 | 36,279 | 25,130 | |||
Interest expense, net | 29,261 | 31,231 | 150,501 | 132,001 | |||
Depreciation and amortization | 24,357 | 22,673 | 93,701 | 90,169 | |||
Refinancing and debt related costs | 200 | 250 | 3,679 | 33,217 | |||
Foreign exchange loss (gain) on intercompany loans, net | 2,117 | (8,797) | 25,152 | (4,654) | |||
Share-based compensation | 17,217 | 678 | 19,779 | 3,263 | |||
Strategic transaction costs | 1,451 | 620 | 5,627 | 5,803 | |||
Adjusted EBITDA | $106,566 | $91,285 | $436,473 | $383,248 | |||
Net revenues | $434,874 | $395,136 | $1,709,237 | $1,508,440 | |||
Net income margin | 4.7 % | 9.4 % | 6.0 % | 6.5 % | |||
Adjusted EBITDA margin | 24.5 % | 23.1 % | 25.5 % | 25.4 % | |||
The following table presents a reconciliation of Net income to Adjusted net income:
(Unaudited) | |||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||
(in thousands, except per share data) | 2025 | 2024 | 2025 | 2024 | |||
Net income | $20,596 | $37,064 | $101,755 | $98,319 | |||
Amortization of intangible assets | 13,620 | 12,931 | 51,681 | 50,515 | |||
Refinancing and debt related costs | 200 | 250 | 3,679 | 33,217 | |||
Foreign exchange loss (gain) on intercompany loans, net | 2,117 | (8,797) | 25,152 | (4,654) | |||
Share-based compensation | 17,217 | 678 | 19,779 | 3,263 | |||
Strategic transaction costs | 1,451 | 620 | 5,627 | 5,803 | |||
Tax effect of add backs | (6,239) | (1,359) | (22,634) | (20,449) | |||
Adjusted net income | $48,962 | $41,387 | $185,039 | $166,014 | |||
Net income per share attributable to common stockholders - diluted: | $0.10 | $0.21 | $0.56 | $0.56 | |||
Adjusted net income per share attributable to common stockholders - diluted: | $0.24 | $0.24 | $1.02 | $0.95 | |||
The following table presents a reconciliation of Debt to Net Debt and Net Debt to Adjusted EBITDA:
(Unaudited) | |||
(in thousands) | December 31, 2025 | December 31, 2024 | |
Term loan | $1,365,000 | $2,075,000 | |
Finance lease obligations | 236 | 359 | |
Debt | 1,365,236 | 2,075,359 | |
Less: Cash and cash equivalents | (123,102) | (154,682) | |
Net debt | $1,242,134 | $1,920,677 | |
Adjusted EBITDA | $436,473 | $383,248 | |
Net debt to Adjusted EBITDA | 2.8x | 5.0x | |