Why Vestis (VSTS) Is Up 8.6% After Posting Wider Losses And Flat 2026 Revenue Guidance

• In December 2025, Vestis Corporation reported fourth-quarter sales of US$712.01 million and a quarterly net loss of US$12.55 million, alongside a full-year net loss of US$40.22 million on sales of US$2,734.84 million, reversing the prior year’s profitability.
• Alongside these widened losses, Vestis guided for fiscal 2026 revenue to be flat to down 2% versus normalized 2025 levels, underscoring management’s cautious outlook on demand and execution.
• We’ll now examine how Vestis’s wider losses and flat-to-down 2026 revenue outlook might reshape the company’s investment narrative.

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Vestis Investment Narrative Recap

To own Vestis today, you need to believe that its uniform rental and workplace supplies business can return to steady growth and healthier margins despite a swing to losses in 2025. The fresh guidance for flat to slightly lower 2026 revenue does not fundamentally change the near term story: the key catalyst remains execution on pricing and efficiency initiatives, while the biggest risk is that revenue softness and margin pressure persist long enough to strain an already leveraged balance sheet.

The latest full year 2025 results, showing US$2,734.84 million in sales but a US$40.22 million net loss versus a prior year profit, are central to this shift in narrative. They tie directly into concerns about customer churn, weaker pricing on new contracts, and the need for operational upgrades, which together will likely shape whether Vestis can stabilize revenue and margins before leverage and interest costs become a more serious constraint.

Yet investors should be aware that if customer churn keeps outpacing new wins and leverage stays high, Vestis could...

Read the full narrative on Vestis (it's free!)

Vestis’ narrative projects $2.9 billion revenue and $62.5 million earnings by 2028.

Uncover how Vestis' forecasts yield a $5.67 fair value, a 25% downside to its current price.

Exploring Other Perspectives

The single Simply Wall St Community fair value estimate of US$7.86 for Vestis shows how one retail view can differ from current pricing. You should weigh that against the risk that ongoing contract churn and weaker pricing could prolong revenue and margin pressure, with clear implications for how the business performs over the next few years.

Explore another fair value estimate on Vestis - why the stock might be worth as much as $7.86!

Build Your Own Vestis Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• 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.
• Our free Vestis research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Vestis' overall financial health at a glance.

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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.

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