10-K annual report · filed Dec 2, 2025

Vestis Corp (VSTS) FY2025 10-K Annual Report

Short answer

Vestis Corp (VSTS) filed its fiscal 2025 10-K annual report with the SEC on Dec 2, 2025. It reported revenue of $2.7B (−2.5% year over year) and net income of −$40M.

  • Top risk flagged: Regulatory risk: U.S. tariffs imposed in FY2025 increased raw material costs, with uncertain future tariff changes potentially disrupting supply chains and raising expenses

FY2025 key financial metrics · XBRL

Revenue
$2.7B
−2.5% YoY
Net income
−$40M
−291.8% YoY
Operating margin
2.4%
−3.3 pp YoY
EPS (diluted)
−$0.31
−293.7% YoY
ROE
-4.6%
−7.0 pp YoY
Operating cash flow
$64M
−86.4% YoY

Source: XBRL data from the Vestis Corp (VSTS) FY2025 10-K on SEC EDGAR. USD.

Vestis Corp FY2025 10-K analysis

AI summary of each section, grounded in the filing text

Business Overview

  • Core business: uniform rentals and workplace supplies across US and Canada, servicing 300,000+ customers with recurring rental contracts
  • New emphasis: multi-year business transformation and restructuring plan initiated in Q1 2026 to improve profitability and cash flow
  • Strategic shift: accelerated growth strategy with focus on commercial excellence, operational excellence, and asset/network optimization
  • Quantitative highlight: approx. 18,150 employees, $2.7 billion revenue in FY 2025, 95% revenue from recurring rental business
  • Noteworthy event: completed spin-off from Aramark on Sept 30, 2023, with NYSE listing under ticker "VSTS" starting Oct 2, 2023

Management Discussion & Analysis

  • Revenue $2,734.8M, down 2.5% YoY (-$71.0M); excluding 53rd week, down 4.4% or $122.6M; uniform revenue fell $105.6M, workplace supplies $17.0M
  • Operating margin 2.4% vs 5.6% in fiscal 2024; operating income $64.4M down 59.2% YoY (-$93.5M)
  • Best performing segment: Canada with operating income $9.0M, up 9.7%, margin 3.6% vs 3.3%; worst performing: US segment income $154.0M down 41.8%, margin 6.2% vs 10.4%
  • Net loss $40.2M vs net income $21.0M prior year; interest expense down $34.3M due to lower debt and rates; SG&A and costs contained but bad debt and severance increased
  • Liquidity: $1.8B credit facility with refinancing completed; restructuring plan launched targeting $75M annual savings by FY26 end, costing $25-30M; management cautious on inflation, labor, and currency risks impacting future results

Risk Factors

  • Regulatory risk: U.S. tariffs imposed in FY2025 increased raw material costs, with uncertain future tariff changes potentially disrupting supply chains and raising expenses
  • Macroeconomic threat: Fuel and energy prices rose due to Ukraine and Middle East conflicts, pressuring operating margins and increasing cost volatility
  • Operational vulnerability: Single-source suppliers and ongoing global supply chain disruptions cause delivery delays, higher substitution rates, and inflate costs for raw materials and products
  • Competitive risk: Price-sensitive uniform rental market with national and regional competitors may force price reductions, eroding revenue and profits
  • Financial risk: Goodwill impairment risk heightened by sustained share price decline and declining financial performance, with potential for significant charges impacting results

Generated from the filing text; verify against the original. How to read a 10-K

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