Company: BWMN
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050314
Chunk: 45

Company: Bowman Consulting Group Ltd.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 45
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 indicative of trends in our business. As a professional services company, we believe that metrics derived from net service billings more accurately demonstrate the productivity and profitability of our workforce than do those derived from gross revenue. Our industry uses the calculation of net service billing to normalize peer performance assessments and provide meaningful insight into trends over time.

Adjusted EBITDA

We view Adjusted EBITDA, which is a non-GAAP financial measure, as an important indicator of normalized performance. We define Adjusted EBITDA as net income before interest expense, income taxes and depreciation and amortization, plus expenses associated with discontinued operations, legal settlements not related to our general course of business professional services, and other costs not in the ordinary course of business, non-cash stock-based compensation (inclusive of expenses associated with the adjustment of our liability for common shares subject to redemption), and other adjustments such as costs associated with raising equity and other forms of capital. Our peers may define Adjusted EBITDA differently.

Adjusted EBITDA Margin, net 

Adjusted EBITDA Margin, net, which is a non-GAAP financial measure, represents Adjusted EBITDA, as defined above, as a percentage of net service billings, as defined above. 

Results of Operations

Combined results of operations

The following represents our condensed consolidated results of operations for periods indicated (in thousands):

For the Three Months Ended   September 30,For the Nine Months Ended        September 30,2025202420252024Gross contract revenue$126,033 $113,932 $361,054 $313,341 Contract costs (exclusive of depreciation and amortization)59,109 54,282 170,465 150,779 Operating expense61,632 59,217 175,117 165,974 Income (loss) from operations5,292 433 15,472 (3,412)Other expense2,018 1,572 5,764 6,000 Income tax benefit(3,344)(1,910)(1,175)(6,543)Net income (loss)$6,618 $771 $10,883 $(2,869)Net margin5.3 %0.7 %3.0 %(0.9)%Other financial information 1Net service billing$112,087 $101,363 $320,137 $281,033 Adjusted EBITDA18,288 16,970 52,995