Landscaping service company BrightView (NYSE: BV) missed Wall Street’s revenue expectations in Q3 CY2025, with sales falling 3.6% year on year to $702.8 million. The company’s full-year revenue guidance of $2.7 billion at the midpoint came in 1.7% below analysts’ estimates. Its non-GAAP profit of $0.27 per share was 14.7% below analysts’ consensus estimates.

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StockStory’s Take

BrightView’s third quarter results for 2025 fell short of Wall Street expectations, with revenue declining year over year and non-GAAP profit below consensus estimates. Management attributed these results to ongoing macroeconomic headwinds and delayed discretionary spending in its land maintenance business. CEO Dale Asplund cited improvements in employee retention and customer satisfaction, stating, “Our unwavering focus on delivering world-class service to our customers continues to yield meaningful momentum in customer retention.” The company also made significant investments in refreshing its fleet and expanding its sales force, which management believes will lay the groundwork for future growth despite near-term challenges.

Looking ahead, BrightView’s guidance centers on a return to revenue growth, supported by recent investments in its workforce, technology, and service offerings. Management emphasized that continued expansion of the sales force and improved efficiency from technology upgrades will be key to achieving these targets. CFO Brett Urban noted that the rollout of a new field service management system and further fleet investments are expected to “drive meaningful improvements in productivity and service delivery,” while Asplund highlighted the importance of maintaining momentum in customer retention and ancillary service expansion as central to the company’s growth strategy for 2026.

Key Insights from Management’s Remarks

Management attributed the quarter’s performance to a combination of ongoing investment in frontline employees, increased sales hiring, and improvements in operational efficiency, while also addressing macro-related headwinds in core segments.

• Sales force expansion: BrightView hired approximately 100 new salespeople during the year, primarily in the back half, aiming to drive top-line growth in future quarters. Management indicated that new sellers typically require up to 18 months to reach full productivity, signaling a lag before these investments affect reported results.

• Employee retention gains: Management highlighted a 400-basis-point improvement in customer retention since the company’s transformation began two years ago, which they linked directly to ongoing efforts to reduce frontline turnover by investing in employee benefits and training programs.

• Fleet modernization: Over $300 million has been invested in refreshing trucks, mowers, and other core equipment, reducing the average age of fleet vehicles and improving operational reliability. This strategy lowered repair and rental expenses, boosted employee morale, and contributed to higher customer satisfaction.

• Operational efficiencies: The company continued to centralize procurement and streamline its organizational structure, resulting in a 180-basis-point improvement in SG&A expenses as a percentage of revenue since 2023. These cost savings are being reinvested in technology and sales initiatives.

• Customer and segment trends: Macro headwinds impacted discretionary and ancillary spending in land maintenance, but management reported sequential improvement through the quarter and expects ancillary service demand to recover as delayed projects resume.

Drivers of Future Performance

Management sees growth in 2026 hinging on sustained sales force expansion, operational efficiencies, and continued improvement in customer and employee retention.

• Salesforce productivity ramp: Management expects the new sellers added in 2025 and planned additions in 2026 to contribute meaningfully to revenue as they mature in their roles. CEO Dale Asplund explained that new sales hires typically require one year to reach standard productivity, with further gains expected after 18 months.

• Operational efficiency and technology: BrightView is rolling out a new field service management system to replace manual processes, which is designed to increase capacity and streamline crew routing. CFO Brett Urban said, “This is a capacity creation tool for us,” enabling the company to serve more clients without proportional increases in headcount.

• Ancillary services and customer retention: Expansion into services such as tree care, supported by targeted investments in specialized equipment and training, is expected to drive higher customer retention and increase wallet share from existing clients. Management believes ongoing progress in employee retention will further support these efforts.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will closely monitor (1) the ramp-up in salesforce productivity and whether it translates into sustained revenue growth, (2) the rollout and impact of the new field service management system on operational efficiency, and (3) continued progress in customer and employee retention rates. We will also track the pace of ancillary service adoption and any signs of recovery in discretionary spending within core segments.

BrightView currently trades at $11.74, in line with $11.85 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).

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