UNIFIRST CORP Revenue Disclosure
Revenue Recognition
In fiscal 2025, approximately 83.8% of the Company’s revenues are derived from fees for route servicing of Uniform & Facility Service Solutions and Other segment services performed by the Company’s employees at the customer’s location of business. The Company recognizes these revenues over time using an output method, as customers simultaneously receive and consume the benefits of the services as they are satisfied. The Company’s remaining revenue representing approximately 16.2% of the Company’s total revenue, is recognized when the obligations under the terms of a contract with a customer are satisfied. This generally occurs when the goods are transferred to the customer.
Certain of the Company’s customer contracts, primarily within the Uniform & Facility Service Solutions segment, include pricing terms that provide customers with potential discounts or rebates based on volume or other performance metrics. These components of variable consideration are not material to the Company’s consolidated revenues, and the related estimates are reassessed each reporting period.
The Company maintains an immaterial liability for these amounts within accrued liabilities on the Consolidated Balance Sheets. Any consideration paid to a customer at the beginning of a contract is capitalized and amortized over the life of the contract as a reduction to revenue.
The following table presents the Company’s revenues for fiscal 2025, 2024 and 2023 disaggregated by segment:
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Year ended |
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2025 |
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2024 |
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2023 |
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(In thousands, except percentages) |
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Revenues |
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% of |
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Revenues |
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% of |
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Revenues |
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% of |
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Uniforms & Facility Service Solutions |
|
$ |
2,218,562 |
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|
|
91.2 |
% |
|
$ |
2,224,030 |
|
|
|
91.6 |
% |
|
$ |
2,041,180 |
|
|
|
91.4 |
% |
First Aid & Safety Solutions |
|
|
114,586 |
|
|
|
4.7 |
% |
|
|
106,271 |
|
|
|
4.4 |
% |
|
|
94,824 |
|
|
|
4.3 |
% |
Other |
|
|
99,204 |
|
|
|
4.1 |
% |
|
|
97,130 |
|
|
|
4.0 |
% |
|
|
97,043 |
|
|
|
4.3 |
% |
Total revenues |
|
$ |
2,432,352 |
|
|
|
100.0 |
% |
|
$ |
2,427,431 |
|
|
|
100.0 |
% |
|
$ |
2,233,047 |
|
|
|
100.0 |
% |
Note: The Company’s segment results for the fiscal year 2025 presented in these Consolidated Financial Statements reflect its modified segments. The Company’s prior period segment results presented in these Consolidated Financial Statements have been recast to conform with the current presentation of its modified segments.
See Note 15, “Segment Reporting” for additional details of segment definitions.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Oct 29, 2025 | Showing above |
| 2024 | Nov 14, 2024 | |
| 2023 | Oct 26, 2023 | |
| 2022 | Oct 26, 2022 | |
| 2021 | Oct 27, 2021 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.