Bowman Consulting Group Ltd. reported significant financial developments in its latest 10-Q filing for the third quarter and nine months ended September 30, 2024. The company achieved gross contract revenue of $113.9 million for Q3 2024, marking a 20.6% increase from $94.4 million in Q3 2023. For the nine months, gross contract revenue rose to $313.3 million, up 23.7% from $253.3 million in the same period last year. This growth was largely attributed to acquisitions, which contributed approximately $49.8 million to the revenue increase.

Despite the revenue growth, Bowman reported a net income of $771,000 for Q3 2024, down from $1.2 million in Q3 2023. The nine-month results showed a net loss of $2.9 million, a decline from a net income of $1.1 million in the prior year. The decrease in profitability was influenced by rising operating expenses, which increased by 28.4% to $59.2 million in Q3 2024, compared to $46.1 million in Q3 2023. Total contract costs also rose, reflecting a 18.8% increase to $54.3 million in Q3 2024.

The company’s total assets grew to $496.9 million as of September 30, 2024, up from $402.8 million at the end of 2023. Total shareholders' equity increased significantly to $243.2 million, compared to $163.3 million at the end of the previous fiscal year. This growth was supported by a common stock offering in April 2024, which raised approximately $51.1 million.

Strategically, Bowman completed several acquisitions, including Surdex Corporation, which contributed to a substantial increase in revenue from emerging markets, up 280.5% year-over-year. The company also entered into a new $100 million revolving credit facility in May 2024, replacing a previous $70 million facility, with an outstanding balance of $32.3 million as of September 30, 2024.

The company’s cash and cash equivalents decreased to $11.7 million from $14.4 million year-over-year, reflecting a net cash outflow of $9 million for the nine months ended September 30, 2024. Net cash provided by operating activities remained stable at $12.4 million, slightly up from $12.3 million in the same period of 2023.

Overall, while Bowman Consulting Group Ltd. experienced notable revenue growth and strategic expansion through acquisitions, it faced challenges in profitability and cash flow management during the reported periods.

About Bowman Consulting Group Ltd.

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