Consolidated Revenue Growth
Total revenue grew 3% year-over-year to $141 million in Q1 2026, reflecting a solid start to the year and supporting the company's maintained full-year revenue guidance of $572M–$585M.
Improved Profitability and EPS Turnaround
EBITDA increased to $4.8 million from $3.5 million a year ago (EBITDA margin up 80 bps to 3.4%). Net income was about $0.8 million vs. a ~$0.8 million loss last year, producing diluted EPS of $0.06 versus a $0.05 loss in Q1 2025.
Gross Margin Expansion Consolidated
Consolidated gross margin rate improved by 30 basis points to 37.1% in the quarter, driven by stronger segment performance and favorable comparisons.
Branded Products: Revenue and Margin Strength
Branded Products (largest segment) grew revenue 5% year-over-year to $91 million. Gross margin expanded by ~210 basis points year-over-year to 34.1%, supported by volume gains, pipeline conversion and stable SG&A (~27% of sales for the segment).
Healthcare Apparel Top-Line Growth and Leadership Addition
Healthcare Apparel revenue rose 5% year-over-year to $29 million. The company appointed Chris Hein as President of the segment to drive strategy, execution and DTC/wholesale initiatives.
Contact Centers: Cost Progress and Pipeline
Although revenue declined, Contact Centers made meaningful cost progress—SG&A declined more than 200 basis points as a percent of sales vs. prior-year quarter—and the opportunity pipeline is described as historically high, with sequential revenue improvement from Q4.
Strong Cash Flow, Balance Sheet and Shareholder Returns
Ended March with $23 million cash, generated >$9 million operating cash flow in the quarter (on top of $20M in 2025), paid $2 million in dividends, repurchased $0.7 million of stock and retains $9.4 million available under repurchase authorization.
Lower Interest Expense and Maintained Guidance
Net interest expense fell to just over $900,000 from >$1.2 million a year ago due to improved net debt and lower rates. Management maintained full-year EPS guidance of $0.54–$0.66 (vs. $0.46 in 2025).
M&A Optionality and Technology Adoption
Management highlighted active M&A interest—particularly in contact centers—and early AI adoption and automation efforts that are driving cost efficiencies and competitive positioning.