Shares dropped 32.6% as investors reacted sharply to a significant revenue decline, margin compression, and a cautious outlook embedded in weak Q2 results.
- Revenue fell 11.3% year-over-year to $455 million, driven by broad softness across segments.
- Adjusted EBITDA declined 25%, shrinking margins to 8.7% from 10.1% a year ago, indicating margin pressure.
- Operating income dropped to $26 million (5.7% margin) from $37 million (7.2% margin), reflecting ongoing profitability challenges.
- EPS collapsed to $0.03 from $0.22, further hit by a higher normalized tax rate reducing EPS by $0.08.
- Management acknowledged disappointing performance with ongoing structural cost reductions and strategic adjustments but did not provide confidence-boosting specifics, fueling investor skepticism.
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