DY - Comprehensive Filing Intelligence

Q3 2026•10-Q•Filed Nov 20, 2025
5.0/10
Filing Health:CAUTION

Notable concerns that warrant closer review

Executive Summary

The company experienced significant revenue growth, driven by fiber-to-the-home deployments and acquisitions, while improving gross margins due to a favorable shift in the mix of work performed.. Operating expenses, particularly G&A, decreased as a percentage of revenue due to lower stock-based compensation and acquisition integration costs, leading to an improving operating margin trend.. The company has significant performance and surety contract bonds outstanding, totaling $432.8 million as of the latest reporting date. These bonds protect customers against contractual failure.. Acquisition of Power Solutions for $1.95 billion announced.

Top Concerns

  • !Amortization of customer relationship intangibles on an accelerated basis.
  • !Use of cost-to-cost measure for revenue recognition on certain contracts (<5% of revenue).
  • !The company has significant performance and surety contract bonds outstanding, totaling $432.8 million as of the latest reporting date. These bonds protect customers against contractual failure.
  • !The company has $53.6 million in outstanding standby letters of credit under its credit agreement, used to collateralize obligations to insurance carriers.
  • !Pending Acquisition of Power Solutions (high)

Top Positives

  • +The company experienced significant revenue growth, driven by fiber-to-the-home deployments and acquisitions, while improving gross margins due to a favorable shift in the mix of work performed.
  • +Cash flow from operations saw a substantial increase, despite significant working capital outflows, indicating a strengthening core business performance.
  • +Capital expenditures remain elevated, supporting growth initiatives, while the company successfully improved its Days Sales Outstanding (DSO).

Analysis Dimensions

Our 5-pass AI analysis examines this filing across multiple dimensions. Each dimension score is derived from direct analysis of SEC filing text.

Narrative Intelligence

5.0/10

Management tone is confidently optimistic with focus on labor and subcontracted labor costs decreased as a percentage of contract revenues due to the mix of work performed..

Full analysis includes: tone changes vs prior quarter, margin driver breakdown, forward guidance analysis, strategic priorities.

Accounting Quality

6.0/10

Earnings quality shows moderate accounting practices.

Full analysis includes: reserve and allowance changes, non-recurring item analysis, stock-based compensation impact, disclosure concerns.

Hidden Liabilities

Off-balance sheet risk is low with $656.7 million in identified exposure.

Full analysis includes: cloud and purchase commitments, VIE/SPE exposure, covenant compliance status, refinancing risk assessment.

Risk Landscape

3.0/10

Overall risk profile shows pending acquisition of power solutions as primary concern.

Full analysis includes: 8 risk categories with severity, new vs escalated risks, management response assessment, risk trend analysis.

Segment Performance

6.0/10

Segment health analysis.

Full analysis includes: segment-by-segment revenue breakdown, geographic concentration risk, customer concentration analysis, segment margin trends.