Dye & Durham Provides Updated Investor FAQ Following Preliminary Unaudited Results

Executive Summary

• Dye & Durham released an updated FAQ clarifying its preliminary unaudited FY 2025 results (revenue down 3.7% to ~$440.6 M) and Q1 FY 2026 results.
• The company confirmed it remains in compliance with its senior credit‑agreement leverage covenants, but warned a default could be triggered if a waiver for the September 30 2025 financial statement delay is not obtained by Dec 17 2025.
• An ongoing court action involving Matthew Proud and Plantro Ltd. is expected to result in a consent‑based temporary injunction enforcing the Cooperation Agreement.

Key Details

• Revenue: FY 2025 unaudited revenue $440.6 M, down 3.7% (≈$17.1 M decline) versus prior year.
• Revenue Decline Drivers: ~50% macroeconomic headwinds & contract renewals; remainder due to reclassification between direct costs and gross revenue – no impact on Adjusted EBITDA or cash.
• Adjusted EBITDA: Re‑stated as unchanged by the reclassification; reconciliation provided in accompanying tables.
• Covenant Compliance: Company expects to meet leverage covenants for periods ended June 30 2025 and September 30 2025 based on unaudited results.
• Potential Default: Senior credit agreement allows a 30‑day cure period after missed financial statement delivery; default would occur if waiver not obtained by Dec 17 2025, giving lenders majority rights to act.
• Court Action Update (Nov 16 2025): Lawyers for Matthew Proud and Plantro Ltd. will consent to the temporary injunction sought by Dye & Durham, requiring compliance with the Cooperation Agreement pending final court decision.
• FAQ Corrections: Tables corrected to label September 30 2025 quarter as “unaudited” and TTM figures aligned with prior periods.

Notable Quotes

(No direct quotes provided in the release.)