Alliance Laundry Holdings Inc.

03/13/2026 | Press release | Distributed by Public on 03/13/2026 11:11

Annual Report for Fiscal Year Ending December 31, 2025 (Form 10-K)

Management's Discussion and Analysis of Financial Condition and Results of Operations
The following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is
a discussion of our financial condition and results of operations and should be read in conjunction with our audited
historical consolidated financial statements and the accompanying notes elsewhere in this Annual Report. In addition to
historical financial information, the following discussion contains forward-looking statements that reflect our plans,
estimates, and beliefs. Our actual results may differ materially from those discussed in the forward-looking statements as a
result of various factors. You should review the information set forth in "Cautionary Note Regarding Forward-Looking
Statements" and "Part I. Item 1A. Risk Factors."For purposes of this section, references to the "Company," "we," "us,"
and "our" refer to Alliance Laundry Holdings Inc. and its subsidiaries. This discussion includes disclosures that are
shown in rounded amounts. The related percentage disclosures are calculated on unrounded amounts. As such, certain
totals, subtotals, and percentages may not reconcile.
The following discussion and analysis of our financial condition and results of operations includes discussion of
certain non-GAAP financial measures. For a description and reconciliation of the non-GAAP measures discussed in this
section, see "-Non-GAAP Financial Measures and Key Operating Metrics" below.
The following is a discussion and analysis of, and a comparison between, our results of operations for the years ended
December 31, 2025 and 2024. A discussion and analysis of, and a comparison between, our results of operations for the
years ended December 31, 2024 and 2023 can be found in the section entitled, "Management's Discussion and Analysis of
Financial Condition and Results of Operations" in our final prospectus on Form 424(b)(4) filed with the SEC on October 9,
2025.
Our Business
We are the world's largest designer and manufacturer of commercial laundry systems, serving a diverse and resilient
range of global end markets. We believe we engineer and produce the highest quality and one of the most reliable
commercial laundry systems in the industry. We leverage our pure play focus on the commercial laundry industry and over
100 years of engineering excellence to drive innovation and design our equipment to deliver outstanding performance in
the most demanding applications. We believe the need for clean laundry is universal and growing, and our premium
machines meet this fundamental human need, all day, every day.
Key Factors Affecting Our Performance
Our results of operations and financial condition have been, and will continue to be, affected by several factors that
present significant opportunities for us but can also pose risks and challenges, including but not limited to those discussed
below and in "Part I. Item 1A. Risk Factors."
Incumbent Replacement Cycle
Despite the high reliability and durability of our equipment it does have a finite life, and the mission-critical nature of
our estimated eight million unit installed base of equipment, which we calculate assuming a ten-year average useful life of
our products, means our growth and performance has been driven by a consistent and predictable demand for replacement
equipment. The incumbency advantage offered by this significant installed base and our investment in maintaining
industry-leading physical and digital product offerings make us, we believe, well placed to capitalize on global demand and
continue to grow our market share and develop new markets for our products. This global demand is driven by the
commercial demand of our continually improved products, our customers repeatedly choosing our products and the
attractiveness of laundromats as an investment, and changes in customer habits or changes to the economic model,
including changes to operating, real estate and construction costs, the operating environment, or delays in laundromat
construction or increased regulatory or permitting obligations for laundromats, could impact this demand in the future.
Investment Trends in Diversified End-Markets
In addition to replacement demand, our performance is also driven by investment trends in both our developed and
developing end markets. The investment and macro trends impacting the On-Premise, Vended and Commercial In-Home
end-markets rarely move in tandem, and our ability to access all these markets by providing systems to satisfy the many
differences between them has been a key driver to our historical performance and we believe will continue to drive our
performance going forward.
Myriad applications required by the On-Premise end market create investment trends that rarely move in sync.
Whether our products are used to sterilize large volumes of linens in healthcare, wash highly specialized firefighting gear,
launder hotel linens or are applied in any of the many other end-use cases, our ability to provide specific solutions for all of
these applications gives us end market diversification globally. We believe our incumbency in many of these applications
provides a strong platform for future growth in both developed and developing markets, as these markets upgrade their
laundry systems to align to more developed market standards.
The growth of the Vended market, whether in laundromats or communal laundry facilities, is being driven by a
combination of changes to the investment model in mature markets, including the U.S. and Western Europe, and
demographic changes in less mature markets where we are helping create the demand and drive adoption of Vended
laundry applications.
The U.S. and Western European laundromat markets are seeing an acceleration of investment, driven by a shift to
more commercially focused investors who are willing to invest in the latest machines and technology to deliver an
improved customer experience, and which also allows them to more easily operate their multi-site businesses. This is
driving demand for equipment for new laundromat locations, but also accelerating the replacement cycle in existing stores
as owners refurbish them to keep pace with the market trends. We believe our industry leading products and digital
technologies, alongside our in-house financing capability in the U.S., makes our products the most attractive choice for
these investors which has driven and will continue to drive our performance.
There remains significant untapped opportunity for Vended laundry systems across many under-penetrated developing
markets where there is a nascent or non-existent Vended laundry culture. We have a successful track record of expanding
our business in these high-potential geographies, such as in Thailand where we have grown revenue at a compound annual
growth rate of approximately 42%since we began operations there in 2017. We believe Vended laundry market
opportunities are driven by a number of key indicators such as GDP growth, population growth, rising personal incomes,
increasing urbanization, and expanding family sizes-all resulting in evolving lifestyles that demand Vended laundry
solutions. We believe there are many other potential markets that could replicate the success we have already seen in
markets like Thailand, though there are inevitable risks associated with growth in these new markets. For example, we face
risks associated with unforeseen government actions, changing political conditions, fluctuations in currency exchange rates,
increases in inflation, and other risks. See "Part I. Item 1A. Risk Factors." In these developing markets, our team takes a
"feet on the street" approach to foster the development of the local commercial laundry industry. We believe accessing
these under-penetrated markets will continue to drive our performance alongside our local partners.
Within the Commercial In-Home market, we have benefited from users who are becoming increasingly frustrated with
lower quality residential machines and are looking for a more reliable and durable commercial-grade solution. We have
capitalized on this demand by focusing on our go-to-market strategy of selling through independent retailers and not "Big
Box" stores; we believe this strategy is unique in the industry and delivers the most profitable laundry sale for a retailer.
We also continue to launch product extensions. Together, these efforts have expanded our reach and product range to in-
home customers and we believe there remains continued growth opportunities in this market as these trends continue.
Manufacturing and Procurement Excellence and Related Costs
To ensure that the reliability, durability and quality of our machines meet our customers' expectations, we seek to
achieve manufacturing and procurement excellence, which in turn means our systems may have higher labor and material
costs than our primary competitors. Those high-quality product characteristics require us to run our manufacturing facilities
efficiently, design products, supporting technologies and any new technologies to appropriately balance cost and
performance, and procure materials and components at optimal prices. These activities have been key to our historical
margin expansion and will continue to be drivers of our margins in the future.
While we continue to focus on cost-down initiatives through engineering, manufacturing and procurement
workstreams, we remain exposed to market prices for these costs. We manage the potential risk in these input costs
through, when we deem appropriate, hedging and fixed price or term contracts. This focus on balancing cost with
performance and quality extends to our suppliers where we focus on long-term, mutually beneficial relationships, rather
than short-term cost minimization transactions, resulting in partnerships that help us to navigate any market volatility. For
example, these relationships were particularly valuable as we navigated the COVID-19 pandemic and supply chain issues
that followed, where we saw no significant disruption to our supply of components and materials.
Non-GAAP Financial Measures and Key Operating Metrics
We regularly review non-GAAP measures to evaluate our business, measure our performance and manage our
operations, including identifying trends affecting our business, formulating business plans and making strategic decisions.
We believe that non-GAAP measures provide an additional way of viewing aspects of our operations that, when viewed
together with our GAAP results, provide a more complete understanding of our results of operations and the factors and
trends affecting our business. These non-GAAP financial measures are also used by our management to evaluate financial
results and to plan and forecast future periods. Non-GAAP financial measures should be considered a supplement to, and
not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.
Adjusted EBITDA and Adjusted EBITDA Margin
This Annual Report contains certain financial measures, including Adjusted EBITDA and Adjusted EBITDA Margin,
that are not required by, or prepared in accordance with, GAAP. We refer to these measures as "non-GAAP" financial
measures. The use of non-GAAP financial measures should not be construed as an alternative to, or more meaningful than,
the comparable GAAP financial measure. You should not consider Adjusted EBITDA or Adjusted EBITDA Margin either
in isolation or as substitutes for analyzing our results as reported under GAAP. Adjusted EBITDA and Adjusted EBITDA
Margin are presented for supplemental informational purposes only and have limitations as an analytical tool. For example,
Adjusted EBITDA and Adjusted EBITDA Margin exclude certain tax payments that may reduce cash available to us,
exclude non-cash charges for depreciation of property and equipment and amortization of intangible assets, do not reflect
any cash capital expenditure requirements for such assets being depreciated and amortized that may have to be replaced in
the future, do not reflect changes in, or cash requirements for, our working capital needs and do not reflect the interest
income or expense, or the cash requirements necessary to service interest or principal payments, on our debt. You should
be aware that our presentation of these and other non-GAAP financial measures in this Annual Report may not be
comparable to similarly titled measures used by other companies, including our competitors.
Adjusted EBITDA and Adjusted EBITDA Margin, as defined below, are key non-GAAP measures we use to assess
our financial performance. "Adjusted EBITDA" represents net income before provision for income taxes, interest expense,
depreciation and amortization and is further adjusted to exclude certain expenses not representative of our ongoing
operations and other charges not involving cash outlays and "Adjusted EBITDA Margin" represents Adjusted EBITDA
divided by net revenues. Management utilizes Adjusted EBITDA and Adjusted EBITDA Margin as measures of operating
performance. Management believes that these non-GAAP financial measures are useful to investors for period-to-period
comparisons of the Company's business and in understanding and evaluating the Company's operating results for the
following reasons:
•Adjusted EBITDA and Adjusted EBITDA Margin are widely used by investors and securities analysts to measure
a company's operating performance without regard to items such as share-based compensation expense,
depreciation and amortization expense, interest expense, other expense (income), net, and income taxes expense
(benefit) that can vary substantially from company to company depending upon their financing, capital structures
and the method by which assets were acquired; and
•Adjusted EBITDA and Adjusted EBITDA Margin provide consistency and comparability with the Company's
past financial performance, facilitate period-to-period comparisons of the Company's primary operating results,
and also facilitate comparisons with other peer companies, many of which use similar non-GAAP financial
measures to supplement their GAAP results.
Non-GAAP Reconciliation
The following table presents a reconciliation of net income to Adjusted EBITDA and Adjusted EBITDA Margin for
the periods presented:
For the Year Ended December 31,
(in thousands except for percentages)
2025
2024
2023
Net income
$101,755
$98,319
$88,229
Provision for income taxes
36,279
25,130
16,226
Interest expense
150,501
132,001
123,397
Depreciation and amortization
93,701
90,169
88,704
EBITDA
382,236
345,619
316,556
Refinancing and debt related costs (1)
3,679
33,217
-
Share-based compensation (2)
19,779
3,263
3,343
Pension termination costs (3)
-
-
7,011
Strategic transaction costs (4)
5,627
5,803
1,083
Foreign exchange losses/(gains) on intercompany loans (5)
25,152
(4,654)
Adjusted EBITDA
436,473
383,248
328,477
Net revenues
$1,709,237
$1,508,440
$1,365,154
Net income margin
6.0%
6.5%
6.5%
Adjusted EBITDA Margin
25.5%
25.4%
24.1%
_____________________
(1)Represents fees in connection with the Credit Agreement and predecessor credit facilities.
(2)Non-cash expenses related to equity awards granted to management.
(3)Expenses related to the termination and settlement of pension obligations, including settlement charges and amortization of net actuarial losses.
(4)Comprised of professional fees, advisory services and other expenses related to the IPO and acquisitions.
(5)Foreign exchange (loss)/gain on intercompany loanswhere the lender or borrower's functional currency differs from the loan denomination
currency.
Segment Operating Metrics
Our business is organized into two reportable segments, North America and International. The Company uses Segment
Net Revenues, Segment Adjusted EBITDA and Segment Adjusted EBITDA Margin as its measures of performance. The
Company allocates certain costs including manufacturing variances, customer support expenses and selling and general
expenses which are incurred in our global operations to the reportable segments in determining Segment Adjusted
EBITDA.
Segment Adjusted EBITDA is a performance metric utilized by the Company's Chief Operating Decision Maker to
allocate resources on a segment basis. We define Segment Adjusted EBITDA as, on a segment basis, net income before
provision for income taxes, interest expense, depreciation and amortization and further adjusted to exclude certain expenses
not representative of our ongoing operations and charges not involving cash outlays. Segment Adjusted EBITDA is a
measure of operating performance of our reportable segments and may not be comparable to similar measures reported by
other companies. See "Note 22 - Segment Information," to our audited consolidated financial statements included
elsewhere in this Annual Report and "-Segment Results" below.
Components of Results of Operations
Net Revenues
Revenue is primarily generated through the sale of our commercial-grade laundry systems and service parts across our
two geographic segments and into the three end markets of OPL, Vended and Commercial In-Home. In addition to the sale
of equipment, we also generate revenues from our wrap-around customer offerings including equipment servicing, digital
products and customer financing solutions. No single customer accounted for more than 10%of our total revenue in any of
the last three fiscal years.
Equipment, Service parts and other
The Company offers a full line of stand-alone laundry washers and dryers and related service parts. These products
range from small residential washers and dryers to large commercial laundry systems. Revenue from equipment and
service part sales is recognized when the Company satisfies a performance obligation by transferring control of a product,
or providing service, to a customer net of any discounts or allowances. Where post-invoice rebates, allowances or sales
incentive programs are offered, the Company estimates and records the cost of this variable consideration at the time of
sale of the related product.
Equipment financing
The Company offers an equipment financing program to end-customers who are primarily laundromat owners to
finance their purchase of new equipment. Typical terms for equipment financing receivables range from twoto twelve
years. Interest income is accrued as earned on outstanding balances. Recognition of income is suspended, and previously
recorded accrued interest income is reversed, when it is determined that collection of future income is not probable (after
89 days past due). Fees earned and incremental direct costs incurred upon origination of equipment financing are not
significant.
Costs and Expenses
Cost of Sales
Cost of sales is comprised of the costs of raw materials and component parts, distribution expenses, costs incurred at
the manufacturing plant level and costs of warehousing, including, but not limited to, labor and related fringe benefits,
depreciation, supplies, utilities, property taxes and insurance, as well as costs associated with product warranties, and other
costs of supporting our other wrap-around customer offerings.
Equipment Financing Expenses
Equipment financing expenses are made up of the interest cost and fees related to our Asset Backed Equipment
Facility, alongside the operational costs, including but not limited to, headcount and systems expenses related to
administering the equipment finance program.
Gross Profit
Gross profit is determined by subtracting cost of sales and equipment financing expenses from net revenues.
Selling, general and administrative expenses
Our selling expenses consist of expenses related to selling our products and services to customers through our global
sales organization including the salaries of our direct sales team. General and Administrative expenses include the cost of
our global, '24x7' engineering and innovation teams as well as the costs required to support the administration of the
business such as finance, accounting, information technology, human resources, legal, general management and
amortization related to the BDTCP Transaction.
Operating income
Operating income is gross profit less SG&A and Other Costs.
Interest expense, net
The Company incurs interest expense related to servicing of its outstanding obligations under its Credit Agreement as
defined herein. The amortization of debt issuance costs and impact of our interest rate hedging instruments are also
included as a component of periodic interest expense.
Net income
Net income is operating income less interest expense, net, other expenses, net, and provision for income taxes.
Factors Affecting the Comparability of Our Results of Operations
Set forth below is a brief discussion of the key factors impacting the comparability of our results of operations.
Public Company Costs
Following the completion of our IPO, we have incurred and expect to continue to incur additional costs associated with
operating as a public company. These costs include additional personnel, legal, consulting, regulatory, insurance,
accounting, investor relations, and other expenses that we did not incur as a private company. The Sarbanes-Oxley Act of
2002, as amended, as well as rules adopted by the SEC and national securities exchanges, require public companies to
implement specified corporate governance practices that are currently inapplicable to us as a private company. These
additional rules and regulations, as well as others associated with being a public company, will increase our legal,
regulatory, financial and insurance costs and will make some other activities more time-consuming and costly.
Refinancing Costs
From time to time the Company enters into new or amended credit agreements or securitization facilities to support its
operations, fund acquisitions, make dividend distributions or for other general corporate purposes. These refinancing
activities and related costs, as well as any capitalized costs and original issue discounts from prior transactions, are
capitalized or expensed in accordance with the debt modification and debt extinguishment accounting guidance. Debt
issuance costs are amortized using the effective interest rate method or straight line when straight line approximates the
effective interest rate method.
In February 2025, the Company finalized an amendment to our Credit Agreement, which reduced the applicable
margin on the Term Loan to 2.75%and Revolving Credit Facility ("RCF") to 2.50%. The Company incurred fees of $1.0
millionin connection with an amendment to our Credit Agreement, which were expensed and included in Other expenses,
netin the Consolidated Statement of Comprehensive Income.
In August 2025, the Company finalized an amendment to our Credit Agreement, which reduced the applicable margin
on the Term Loan to 2.25%and RCF to 2.25%. The Company incurred fees of $1.3 millionin connection with an
amendment to our Credit Agreement, which were expensed and included in Other expenses, netin the Consolidated
Statement of Comprehensive Income.
In August 2024, the Company incurred fees of $32.8 millionin connection with the execution of the Credit
Agreement. Of these fees, $30.4 millionwas expensed and included in Other expenses, net and Other expenses, net -
related parties in the consolidated statements of comprehensive income. The remaining $2.4 millionrelated to the
Revolving Facilities and was capitalized and included in the Other long-term assets line of the consolidated balance sheets.
The Company also recorded $10.4 millionof original issuance discount in 2024 related to the Credit Agreement, which is
included in the Long-term debt, net line of the consolidated balance sheets. Additionally, the Company wrote off a portion
of the unamortized debt issuance costs and original issuance discounts related to the prior credit agreement, resulting in
expense of $2.8 millionrecorded in Other expenses, net in the consolidated statements of comprehensive income.
Presentation of Financial Information
Alliance Laundry Holdings Inc. is a holding company with no business operations or assets other than the capital stock
of its direct and indirect subsidiaries, including those of Alliance Laundry Holdings LLC and Alliance Laundry Systems
LLC. Alliance Laundry Systems LLC, a direct, wholly owned subsidiary of Alliance Laundry Holdings LLC, which is a
direct, wholly owned subsidiary of Alliance Laundry Holdings Inc., is the U.S. Borrower under the Credit Agreement and
the Originator and Servicer under the Asset Backed Equipment Facility and the Asset Backed Trade Receivables Facility,
each as defined below.
Results of Operations
For the Year Ended December 31, 2025v. Year Ended December 31, 2024
The following table sets forth our results of operations for the periods indicated:
(in thousands)
December 31, 2025
December 31, 2024
Net revenues:
Equipment, service parts and other
$1,659,680
$1,459,746
Equipment financing
49,557
48,694
Net revenues
1,709,237
1,508,440
Costs and expenses:
Cost of sales
1,028,073
914,655
Cost of sales - related parties
7,322
6,218
Equipment financing expenses
31,738
36,316
Gross profit
642,104
551,251
Selling, general, and administrative expenses
324,458
266,444
Selling, general, and administrative expenses - related parties
Other costs
-
Total operating expenses
324,738
267,238
Operating income
317,366
284,013
Interest expense, net
150,501
132,001
Other expenses, net
28,831
23,376
Other expenses, net - related parties
-
5,187
Income before taxes
138,034
123,449
Provision for income taxes
36,279
25,130
Net income
$101,755
$98,319
Net Revenues
Net revenues for the year ended December 31, 2025 increased $200.8 million, or 13%, to $1,709.2 millionfrom
$1,508.4 millionfor the year ended December 31, 2024. Equipment revenue increased $178.8 million, or 14%, year over
year, primarily driven by volume growth across our reportable segments and all three end markets and modest price
increases. Service parts revenue increasedyear over year $18.7 million, or 12%. Other revenues increased $2.4 million, or
6%, primarily due to increased field service revenue. Equipment financing revenue increased $0.9 million, or 2%, driven
by the growth of the loan base, partially offset by lower interest income on floating loan rates decreasing alongside the
prime rate.
Net revenues increased $159.8 millionin North America, mainly driven by strong demand across all end markets, with
particularly strong performance in Vended, an increase of 11%, and Commercial In-Home, an increase of 26%, end
markets. International segment net revenues increasedby $41.0 milliondue to strong performance in Europe, an increase of
18%, and in Asia Pacific, an increase of 10%, where the expanding Vended end market is driving growth.
Gross profit
Gross profit for the year ended December 31, 2025 increased $90.9 million, or 16%, to $642.1 millionfrom $551.3
millionfor the year ended December 31, 2024. Gross profit as a percentage of net revenues was 38%for the year ended
December 31, 2025as compared to 37%for the year ended December 31, 2024. The increase in gross profit as a
percentage of revenue was primarily driven by our continued focus on manufacturing and procurement excellence, and the
benefits of higher production volumes and modest price increases, net of increased input costs including tariff related
expenses.
Selling, general, and administrative expenses ("SG&A")
Selling, general, and administrative expenses for the year ended December 31, 2025 increased $58.0 million, to $324.7
millionfrom $266.7 millionfor the year ended December 31, 2024. Selling, general, and administrative expenses as a
percentage of net revenues was 19%for the year ended December 31, 2025as compared to 18%for the year ended
December 31, 2024. Included within Selling, general, and administrative expenses is $42.9 millionand $44.6 million
related to non-cash depreciation and amortization of assets, which represents the portion of assets that had increases to their
historical basis as a result of purchase accounting related to the BDTCP Transaction for the years ended December 31,
2025and 2024, respectively. The increasein Selling, general and administrative expenses is primarily due to investment in
physical and digital product development, increased Information Technology expenses to support systems and security,
acquisition of distributors, public company support costs, additional headcount, expense recognized for performance-based
options as the awards fully vested upon the IPO, and selling expenses driven by higher sales volume and profitability.
Interest expense, net
Interest expense, net for the year ended December 31, 2025 increased $18.5 millionto $150.5 millionfrom $132.0
millionfor the year ended December 31, 2024. The increase in interest expense was primarily attributable to the higher
debt balance following the August 2024 refinancing referenced elsewhere in this MD&A.
Other expenses, net
Other expenses, net for the year ended December 31, 2025were $28.8 millioncompared to $28.6 millionfor the year
ended December 31, 2024. Other expenses, net for the year ended December 31, 2025were comprised of $25.2 million
foreign exchange losseson intercompany loans where the lender or borrower's functional currency differs from the loan
denomination currency and $3.7 millionassociated with refinancing of the Credit Agreement. See Note 18 - Debtto our
audited consolidated financial statements included elsewhere in this Annual Report for a discussion of the Credit
Agreement. Other expenses, net for the year ended December 31, 2024, were comprised of $33.2 million associated with
the entry into the Credit Agreement partially offset by $4.7 millionforeign exchange gainson intercompany loans where
the lender or borrower's functional currency differs from the loan denomination currency.
Provision for Income Taxes
The effective income tax rate was 26.3%for the year ended December 31, 2025, as compared to 20.4%for the year
ended December 31, 2024. As a result of the IPO, the Company is now subject to Internal Revenue Code section 162(m),
Limitation on Officers' Compensation, which resulted in a discrete non-cash charge of $5.2 million, which was partially
offset by a $3.1 millionbenefit related to excess tax benefits on share-based payments. Additionally discrete non-cash
charge of $1.7 million was recorded for the establishment of a valuation allowance against certain foreign tax credits that
are expected to expire and not be realized.
Segment Results
Our business is organized into two reportable segments, North America and International.
The Company uses Segment Net revenues, Segment Adjusted EBITDA and Segment Adjusted EBITDA Margin as its
measures of performance. The Company allocates certain costs including manufacturing variances, customer support
expenses and selling and general expenses which are incurred in our global operations to the reportable segments in
determining Segment Adjusted EBITDA.
The segment measurements provided to, and evaluated by, the Chief Operating Decision Maker ("CODM") are
described in "Note 22 - Segment Information" to our audited consolidated financial statements included elsewhere in this
Annual Report.
The following table presents the Company's segment results.
Year Ended December 31,
(in thousands, except for percentages)
2025
2024
2023
North America
Net revenues
$1,268,979
$1,109,134
$996,762
Adjusted EBITDA
$361,487
$317,779
$265,391
Adjusted EBITDA Margin
28.5%
28.7%
26.6%
International
Net revenues
$440,258
$399,306
$368,392
Adjusted EBITDA
$120,597
$103,148
$94,402
Adjusted EBITDA Margin
27.4%
25.8%
25.6%
For the Year ended December 31, 2025v. December 31, 2024
North America
Revenue in North America increased $159.8 million, or 14%, to $1,269.0 millionfor the year ended December 31,
2025compared to the year ended December 31, 2024. Equipment revenue increased $141.2 million, or 15%, year over
year, mainly driven by strong demand across all end markets, with particularly strong performance in the Vended (an
increaseof 11%) and Commercial In-Home (an increaseof 26%) end markets. Service parts revenue increasedyear over
year $14.4 million, or 13%, primarily driven by a mix of price and volume growth. Other revenues increased $3.2 million,
or 9%, primarily due to field service revenues. Equipment financing revenue increased $1.1 million, or 2%, driven by the
growth of the loan base, partially offset by lower interest income on floating loan rates decreasing alongside the prime rate.
Adjusted EBITDA increased $43.7 million, or 14%, to $361.5 millionfor the year ended December 31, 2025
compared to the year ended December 31, 2024and Adjusted EBITDA Margin decreasedslightly to 28.5%for the year
ended December 31, 2025from 28.7%for the year ended December 31, 2024. This decreasewas primarily driven by
product mix and investment in product development and other operational projects to drive future growth, partially offset
by the benefits of higher volumes and operational cost reduction initiatives.
International
Revenue increased $41.0 million, or 10%, to $440.3 millionfor the year ended December 31, 2025compared to the
year ended December 31, 2024. Equipment revenue increased $37.6 million, or 11%, year over year, primarily due to
strong performance in Europe (an increaseof 18%) and in Asia Pacific (an increaseof 10%) where the expanding Vended
end markets are driving growth. Service parts revenue increasedyear over year $4.2 million, or 10%, primarily driven by a
mix of price and volume growth.
Adjusted EBITDA increased $17.4 million, or 17%, to $120.6 millionfor the year ended December 31, 2025
compared to the year ended December 31, 2024and Adjusted EBITDA Margin increasedto 27.4%for the year ended
December 31, 2025from 25.8%for the year ended December 31, 2024. This increase was primarily driven by gross
margin expansion due to higher volumes and cost reduction initiatives in addition to operating expense controls.
Liquidity and Capital Resources
Overview
Our principal sources of liquidity are cash on hand, cash flows generated from operations, and potential borrowings
under our revolving credit facilities. We believe that our sources of liquidity will be adequate to meet our anticipated
requirements for ongoing operations, capital expenditures, working capital, interest payments, scheduled principal
payments, and other debt repayments over the next twelve months while remaining in compliance with the covenants of
our debt agreements. As of December 31, 2025and 2024, we had unrestricted cash and cash equivalents of $123.1 million
and $154.7 million, respectively. As of December 31, 2025and 2024, our total long-term debt, net was $1,354.6 million
and $2,034.5 million, respectively, and our total asset backed borrowings was $618.6 millionand $553.8 million,
respectively.
We are a holding company that transacts substantially all of our business through our operating subsidiaries.
Consequently, our ability to pay dividends to stockholders, meet debt payment obligations, and pay taxes and operating
expenses is largely dependent on dividends or other distributions from our subsidiaries, whose ability to pay such
distributions to us is restricted, subject to certain exceptions, pursuant to the terms of the Credit Agreement. We currently
do not intend to declare dividends on our common stock in the foreseeable future, see "Item 5: Market for Registrant's
Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities - Dividend Policy".
Our principal liquidity needs have been, and we expect them to continue to be, working capital and general corporate
needs, debt service and debt reduction, capital expenditures and potential acquisitions. Our capital expenditures were $53.7
million, $43.5 millionand $32.7 millionfor the years ended December 31, 2025, 2024and 2023, respectively. We expect
that capital expenditures in 2026will be approximately $60 million.
On August 19, 2024, one of the Company's subsidiaries entered into the Credit Agreement. The Credit Agreement
provides for a Term Facility in an aggregate principal amount of $2,075.0 million, a Primary Revolving Facility with
aggregate commitments of $225.0 million, and a Thai Baht Revolving Facility with aggregate commitments of $25.0
million.
On February 20, 2025, we finalized an amendment to our Credit Agreement, which reduced the applicable margin on
the Term Loan and RCF. The result was an interest rate on our Term Loan of SOFR plus 2.75%and an interest rate on our
RCF of SOFR plus 2.50%.
On August 21, 2025, we finalized an amendment to our Credit Agreement, which reduced the applicable margin on the
Term Loan and RCF. The result is an interest rate as follows (i) the Term Facility bears interest at a rate per annum equal
to, at the applicable Borrower's option, Term SOFR plus 2.25%or the applicable base rate plus 1.25%, (ii) the Revolving
Facilities denominated in U.S. dollars bears interest at a rate per annum equal to, at the applicable Borrower's option, Term
SOFR plus 2.25%or the applicable base rate plus 1.25%and (iii) the Revolving Facilities denominated in Euros or Thai
baht bore interest at a rate per annum equal to Adjusted EURIBOR or the Daily Simple RFR, respectively, plus, in each
case, 2.25%. The foregoing interest rate margins will be subject to a step down of 0.25%in the event (i) the corporate
credit ratings by Moody's Investor Services, Inc. and Standard & Poor's Ratings Group, Inc. are B1 (stable) and B+
(stable), respectively, or higher and (ii) we achieve a First Lien Net Leverage Ratio equal to or less than 3.50 to 1.00.
In addition, the U.S. Borrower is required to pay a commitment fee equal to 0.250%per annum on any unused
commitments under the Revolving Facilities, subject to a step up to 0.375%in the event we fail to maintain a First Lien Net
Leverage Ratio equal to or less than 4.50 to 1.00. See Note 18 - Debtto the consolidated financial statements for additional
information.
The net proceeds from our initial public offering along with cash on hand were used to repay $525.0 millionof our
indebtedness outstanding under the Term Loan on October 17, 2025. The repayment was first applied to and eliminated the
future required quarterly installment principal repayments. As such, the remaining balance of the Term Loan is due at
maturity on August 19, 2031, with an exception for any Excess Cash Flow payment required under the Credit Agreement.
The Company maintains a trade receivables securitization facility. ALTR LLC, a special-purpose bankruptcy remote
subsidiary of the Company, is party to a $120.0 millionrevolving credit facility (which represents an increase of $20.0
millionfrom the $100.0 millionfacility size as of December 31, 2025, effected by an amendment entered into on May 1,
2025), which is secured by the Asset Backed Trade Receivables Facility. The Asset Backed Trade Receivables Facility is
due to expire on May 1, 2028. ALTR LLC finances the acquisition of trade receivables from Alliance Laundry Systems
through borrowings under the Asset Backed Trade Receivables Facility in the form of funding notes which are limited to
an advance rate of approximately 88% as of December 31, 2025.
The Company also maintains an internal financing organization primarily to assist end-user laundromat locations in
financing company-branded equipment through the Company's distributors. The financing organization originates and
administers the sale of equipment financing receivables. Under this program, the Company sells certain equipment
financing receivables to a special-purpose bankruptcy remote subsidiary, which in turn transfers them to a trust. The
special-purpose subsidiary and trust are party to a revolving credit facility. On May 1, 2025, we amended ourAsset Backed
Equipment Facility to increase the lender commitment to $500.0 millionfrom $460.0 millionand include a future
uncommitted lender increase of $30.0 million. On December 29, 2025, the Company entered into an agreement (the
"Facility Limit Increase Agreement") to convert the lender uncommitted amount of $30.0 million, which increased the
lender committed amount under the Asset Backed Equipment Facility from $500.0 millionto $530.0 million. The Asset
Backed Equipment Facility is due to expire on May 1, 2028. The trust finances the acquisition of equipment financing
receivables through borrowings under the Asset Backed Equipment Facility in the form of funding notes which are limited
to an advance rate of approximately 88%.
In August 2024, following the execution of the Credit Agreement, we paid a $900.0 milliondividend to common
stockholders.
We anticipate that any additional liquidity needs will be funded through, if needed, the future incurrence of additional
indebtedness, or the issuance of additional equity, or a combination thereof.
We cannot assure you that we will be able to obtain this additional liquidity on reasonable terms, or at all.
Additionally, our liquidity and our ability to meet our obligations and fund our capital requirements are also dependent on
our future financial performance, which is subject to general economic, financial, and other factors that are beyond our
control. See "Item 1A. Risk Factors."
Cash Flows Information
The following table presents a summary of cash flows for the periods presented:
Year Ended December 31,
(in thousands)
2025
2024
Net cash provided by operating activities
$211,685
$145,460
Net cash used in investing activities
(91,647)
(87,760)
Net cash used in financing activities
(157,910)
(75,374)
Effect of exchange rate changes on cash and cash
(467)
(4,253)
Increase/(decrease) in cash, cash equivalents, and restricted cash
$(38,339)
$(21,927)
Operating Activities
Cash provided by operating activities during 2025of $211.7 millionwas primarily derived from net income adjusted
for non-cash provisions and partially offset by a $50.1 million increasein working capital. The primary contributors to the
change in working capital were a $44.8 million increasein accounts and equipment financing receivables held for
securitization investors, a $13.5 million decreasein accounts payable, an increasein accounts receivable and equipment
financing receivables of $9.8 million, and an increasein inventory of $6.3 million, partially offset by an increasein other
liabilities of $20.9 million, and a $3.4 million decreasein other assets.
Cash provided by operating activities during 2024of $145.5 millionwas primarily derived from net income adjusted
for non-cash provisions and partially offset by a $25.7 million increasein working capital. The primary contributors to the
change in working capital were a $26.0 million increasein accounts and equipment financing receivables held for
securitization investors and a decreasein other liabilities of $12.1 million, partially offset by a decreasein inventory of $5.8
millionand a $5.6 million increasein accounts payable.
Investing Activities
Cash used by investing activities of $91.6 millionfor the year ended December 31, 2025was primarily the result of
$53.7 millionof capital expenditures primarily related to new and replacement manufacturing equipment and engineering
testing capabilities, $12.6 millionrelated to the acquisitions of distributors in the United States, and $25.7 millionnet
outflow related to originations of securitized equipment financing receivables exceeding collections.
Cash used by investing activities of $87.8 millionfor the year ended December 31, 2024was primarily the result of
$43.5 millionof capital expenditures primarily related to new and replacement manufacturing equipment and engineering
testing capabilities, $27.9 millionrelated to the acquisitions of distributors in the United States, and $18.8 millionnet
outflow related to originations of securitized equipment financing receivables exceeding collections.
Financing Activities
Cash used by financing activities of $157.9 millionfor the year ended December 31, 2025was primarily the result of
$710.0 millionin payments on long-term borrowings, partially offset by $497.0 millionin net proceeds from our IPO and
$64.8 millionrelated to a net increase in asset backed borrowings owed to securitization investors.
Cash used by financing activities of $75.4 millionfor the year ended December 31, 2024was primarily the result of
$1,268.0 millionin payments on long-term borrowings, $900.0 millionfor dividends to common stockholders, and $5.7
millionnet payments on revolving line of credit borrowings, partially offset by $2,064.6 millionin proceeds from long-
term borrowings and $38.5 millionrelated to a net increase in asset backed borrowings owed to securitization investors.
Cash Requirements
The Company's material cash requirements primarily consist of working capital requirements, repayments of long-term
debt and related interest, securitization activities, operating leases, capital expenditures, and potential acquisitions. As of
December 31, 2025, we had the following obligations:
• Long-term debt of $1.4 billionon the Term Loan, due at maturity on August 19, 2031. See "Note 18 - Debt" to our
audited consolidated financial statements included elsewhere in this Annual Report for additional information on debt
obligations and maturities. Future interest payments on the Term Loan expected to be $79.3 millionover the next year.
• See "Note 10 - Leases" to our audited consolidated financial statements included elsewhere in this Annual Report for
additional information on lease obligations and maturities.
• Amounts owed to securitization investors under our Asset-backed borrowings of $618.6 million. See "Note 7 -
Securitization Activities" to our audited consolidated financial statements included elsewhere in this Annual Report for
additional information on securitization obligations and maturities.
Off-Balance Sheet Arrangements
As of December 31, 2025, we did not have any off-balance sheet arrangements, as defined in Regulation S-K
promulgated by the SEC.
Critical Accounting Policies and Use of Estimates
The preparation of financial statements in conformity with United States generally accepted accounting principles
("GAAP") requires us to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure
of contingent assets and liabilities at the financial statement date and reported amounts of revenues and expenses, including
amounts that are susceptible to change. Our critical accounting estimates include accounting methods and estimates
underlying such financial statement preparation, as well as judgments around uncertainties affecting the application of
those policies. In applying critical accounting estimates, materially different amounts or results could be reported under
different conditions or using different assumptions. When required, management considers the perspective of market
participants in accordance with current accounting guidance. See Note 2 - Significant Accounting Policies to our
consolidated financial statements included elsewhere in this Annual Report for a summary of our significant accounting
policies.
Goodwill and Indefinite-Lived Intangible Assets. Goodwill is tested for impairment at least annually and more
frequently if an event occurs which indicates that goodwill may be impaired. Accounting Standards Update ("ASU") No.
2017-04 Intangibles-Goodwill and Other ("Topic 350"): Simplifying the Test for Goodwill allows companies to apply a
one-step quantitative test and, as applicable, record the amount of goodwill impairment as the excess of a reporting unit's
carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The estimated
fair value is determined on an income-based approach. Under the income-based approach, fair value is estimated using the
expected present value of future cash flows. There was no goodwill impairment for the years ended December 31, 2025,
2024and 2023.
Several of the Company's tradenames and trademarks have been deemed to have an indefinite life as the Company
expects to continue to use these assets for the foreseeable future. There are no limitations of a legal, regulatory or
contractual nature that limit the period of time for which the Company can use these assets. The Company has the right to
continue to use these assets and can continue to do so with limited cost to the Company. The effects of obsolescence,
demand, competition and other economic factors are not expected to impact the indefinite life assumptions. Intangible
assets not subject to amortization (indefinite-lived intangible assets) are tested for impairment at least annually and more
frequently if an event occurs which indicates the intangible asset may be impaired. The impairment test consists of a
comparison of the fair value of the intangible asset with its carrying amount. An impairment loss is recognized if the
carrying amount of an intangible asset exceeds its fair value in an amount equal to that excess, but not to exceed the
carrying amount of the intangible asset. The fair value of the tradenames and trademarks is determined using the relief-
from-royalty method. There was no impairment of our indefinite-lived assets for the years ended December 31, 2025, 2024
or 2023.
Income Taxes. The income tax provision is computed based on the pretax income included in the Company's
consolidated statements of comprehensive income. Certain items of income and expense are not recognized on the
Company's income tax returns and financial statements in the same year, which creates timing differences or are
permanently disallowed. The income tax effect of these timing differences results in (i) deferred income tax assets that
create a reduction in future income taxes and (ii) deferred income tax liabilities that create an increase in future income
taxes. Recognition of deferred income tax assets is based on management's belief that it is more likely than not that the
income tax benefit associated with temporary differences will be realized. The Company records a valuation allowance to
reduce its net deferred income tax assets if, based on its assessment of future taxable income, it is more likely than not that
it will not be able to use these tax benefits. The Company may have to adjust the valuation allowance if its estimate of
future taxable income changes at any time. Recording such an adjustment could have a material adverse effect on the
Company's consolidated statements of comprehensive income.
Product Warranty Liabilities. The costs of warranty obligations are estimated and provided for at the time of sale.
Standard product warranties vary from one to seven years. The standard warranty program includes replacement of
defective components. Additionally, the standard warranty covers labor costs for repairs solely related to Commercial In-
Home equipment. The Company also sells separately priced extended warranties associated with its commercial products.
The Company recognizes extended warranty revenues over the period covered by the warranty.
Allowance for Credit Losses - Equipment Financing Receivables.The allowance for credit losses is an estimate of
losses inherent to our equipment financing receivables portfolio. Our estimate includes accounts that have been
individually identified as impaired and estimated credit losses over a pool of receivables where it is probable that certain
receivables in the pool are impaired but that the individual accounts cannot yet be identified. When determining estimates
of probable credit loss or whether an account is impaired, management takes into consideration numerous quantitative and
qualitative factors such as historical loss experience, credit risk, portfolio duration, and economic conditions. The Company
determined that there is a limited correlation between expected credit losses and forecasted economic conditions based on a
correlation analysis performed to compare historical losses to various economic conditions, such as real gross domestic
product, inflation rate and unemployment rate. On an ongoing basis, the Company monitors credit quality based on past-
due status as there is a meaningful correlation between the past-due status of customers and the risk of credit loss.
We determine that an equipment financing receivable is impaired when it is probable that we will be unable to collect
all amounts due according to the contractual terms of the loan or lease. These equipment financing receivables are
collateral-dependent and measurement of impairment is based upon the estimated fair value of collateral. The
determination of the allowance for credit losses is based on an analysis of historical loss experience and reflects an amount
which, in our judgment, is adequate to provide for probable credit losses. When a financing receivable is non-performing,
aged greater than 89 days and the Company has exhausted all efforts of collection, the receivable is deemed to be
uncollectible and is charged off and deducted from the allowance. The allowance is increased for recoveries and by charges
to earnings.
The total allowance for credit losses as of December 31, 2025and 2024was $6.4 millionand $5.9 million,
respectively. The reserve as a percentage of the total gross portfolio balance as of December 31, 2025and 2024was 1.1%
and 1.1%, respectively.
Recent Accounting Pronouncements
See Note 2 - Significant Accounting Policiesto our consolidated financial statements included elsewhere in this
Annual Report for a description of recent accounting pronouncements, if any, including the expected dates of adoption and
the anticipated impact on our consolidated financial statements.
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