Vestis (VSTS) opened Q1 2026 with revenue of US$663.4 million and a basic EPS loss of US$0.05, alongside net income excluding extra items of a US$6.4 million loss. Over recent quarters the company has seen revenue move between US$665.2 million and US$712.0 million, while quarterly basic EPS has ranged from a small profit of US$0.01 to a loss of US$0.21. This gives investors a clear view of pressure on margins at the same time as the market weighs the stock at US$8.50 per share. With losses still evident and interest costs high relative to earnings, this set of results keeps the focus firmly on whether Vestis can shift margins toward a more sustainable footing.

See our full analysis for Vestis.

With the latest quarter on the table, the next step is to see how these numbers line up with the widely followed narratives about Vestis, and where the data might support or challenge those views.

Losses Persist Over The Last 12 Months

• On a trailing twelve month basis Vestis generated US$2.7b in revenue and reported a net loss excluding extra items of US$47.4 million, compared with a small profit of US$9.5 million on US$2.8b of revenue a year earlier.
• Critics highlight that unprofitability and rising losses are a key concern, and the recent numbers line up with that cautious view.
  • Losses have increased over the past five years at an annualized rate of 52.1%, and the latest twelve month loss of US$47.4 million sits against that longer track record.
  • Bears also point to weak interest coverage as a risk, and the fact that earnings over the trailing period are still negative supports their focus on the balance between debt and earning power.

Over the last year of results, skeptics argue that the core issue is not revenue size but the persistence of losses and pressure from financing costs. They see this as a key test for any recovery thesis. 🐻 Vestis Bear Case

Quarterly Loss Narrows, But Profitability Still Elusive

• Q1 2026 showed a basic EPS loss of US$0.05 and a net loss excluding extra items of US$6.4 million, compared with a Q2 2025 loss of US$27.8 million and EPS loss of US$0.21 at the worst point in the recent sequence.
• Supporters of the bullish view argue that improving EPS and smaller quarterly losses can fit with a turn toward profitability, but the data also shows how much ground there is to cover.
  • Across the last five reported quarters, Vestis moved from a small profit of US$0.8 million in Q1 2025 to several loss making quarters, including US$12.5 million lost in Q4 2025 before the smaller US$6.4 million loss in Q1 2026.
  • Bullish expectations of earnings growth and a move into the black within three years are set against this pattern of recent losses, so investors can see both the potential path and the current gap.

Bulls argue that the step down from the US$27.8 million peak quarterly loss to a US$6.4 million loss is the kind of progress that could support a longer term turnaround if it continues, even though profitability is not yet in place. 🐂 Vestis Bull Case

Low P/S Multiple Versus Ongoing Interest Risk

• With the share price at US$8.50 and trailing twelve month revenue of about US$2.7b, Vestis trades on a P/S of roughly 0.4x, compared with a peer average of 1.1x and a US Commercial Services industry average of 1.2x, while at the same time interest costs are flagged as not well covered by earnings.
• Analysts who see value in the shares point to the discount on P/S, while more cautious investors focus on the combination of that low multiple with weak interest coverage and multi year loss growth.
  • The 0.4x P/S level is significantly below peers, which some view as a potential margin of safety, yet the trailing loss of US$47.4 million shows that the business is not currently generating earnings to cover financing costs.
  • This creates a clear tension between the reward of a cheaper revenue multiple and the risk that continued losses and interest expense could weigh on the company until profitability and stronger coverage are established.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Vestis on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

See the numbers differently? If you think the figures tell another story, shape your own view in just a few minutes and Do it your way.

A great starting point for your Vestis research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

See What Else Is Out There

Vestis is wrestling with persistent losses, weak interest coverage and pressure on margins, even as revenue sits at US$2.7b over the last twelve months.

If that mix of ongoing losses and financing strain feels uncomfortable, take a few minutes to scan 83 resilient stocks with low risk scores and look for businesses where balance sheets and earnings profiles appear more resilient.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.