Company: BWMN
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001628280-25-039001
Chunk: 165

Company: Bowman Consulting Group Ltd.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 165
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 June 30,20252024Gross contract revenue$122,090 $104,501 Less: sub-consultants and other direct expenses14,093 10,520 Net service billing$107,997 $93,981 

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. 

Adjusted EBITDA (non-GAAP)

Adjusted EBITDA increased $6.8 million or 50.6% to $20.2 million for the three months ended June 30, 2025 as compared to $13.4 million for the three months ended June 30, 2024. Adjusted EBITDA reconciles to net income as follows (in thousands): 

For the Three Months Ended      June 30, 20252024$ Change % Change Net Service Billing$107,997 $93,981 $14,016 14.9 %Net Income (loss)$6,009 $(2,082)$8,091 (388.6)%+ interest expense2,259 1,775 484 27.3 %+ depreciation & amortization6,544 7,181 (637)(8.9)%  +  tax expense (benefit)1,399 (1,180)2,579 (218.6)%EBITDA$16,211 $5,694 $10,517 184.7 %+ non-cash stock compensation3,093 6,077 (2,984)(49.1)%+ settlements and other non-core expenses188 414 (226)(54.6)%+ acquisition expenses711 1,227 (516)(42.1)%Adjusted EBITDA$20,203 $13,412 $6,791 50.6 %Adjusted EBITDA margin, net18.7 %14.3 %

For the three months ended June 30, 2025 and 2024, Adjusted EBITDA includes add backs of $3.1 million and $6.1 million, respectively,