Company: BWMN
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001628280-25-023232
Chunk: 45

Company: Bowman Consulting Group Ltd.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 45
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 for the three months ended March 31, 2025, increased $4.3 million to $0.8 million expense, compared to ($3.5) million benefit for the three months ended March 31, 2024, see Note 2, Income Taxes. Our effective tax rate for the three months ended March 31, 2025, is (78.9)% compared to 68.9% for the three months ended March 31, 2024.

Income (Loss) Before Tax and Net Income (Loss)

Loss before tax decreased by $4.0 million for the three months ended March 31, 2025, to ($1.0) million of loss compared to ($5.0) million of loss for the three months ended March 31, 2024. Net loss increased by $0.1 million to ($1.7) million for the three months ended March 31, 2025, as compared to ($1.6) million for the three months ended March 31, 2024. 

Other financial information and Non-GAAP key performance indicators 

Net service billing (non-GAAP)

Net service billing increased $14.4 million or 16.8% to $100.1 million for the three months ended March 31, 2025, as compared to $85.7 million for the three months ended March 31, 2024. Net service billing reconciles to gross contract revenue as follows (in thousands):

For the Three Months Ended March 31,20252024Gross contract revenue$112,931 $94,907 Less: sub-consultants and other direct expenses12,878 9,218 Net service billing$100,053 $85,689 

Because sub-consultants and reimbursable expenses are most often pass-through items with little or no mark-up, they generally have a dilutive effect on gross, operating, and net margins while having little accretive effect on profitability. As such, where possible, we focus our resources and business development efforts principally on increasing revenue derived from our own workforce. Management primarily focuses its internal performance metrics on net service billing. 

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Adjusted EBITDA (non-GAAP)

Adjusted EBITDA increased $2.4 million or 19.6% to $14.5 million for the three months ended March 31, 2025 as compared to $12.1 million for the three months ended