What was the impact of the divested business on overall profitability and margins?

Answer

The press release you quoted only supplies revenue figures for the quarter and a “revenue‑ex‑divested‑business” line that shows the same total revenue number ( $736.9 million) but a different year‑ago comparison:

Because the release does not disclose any profitability metrics (e.g., net income, operating income, EBITDA, earnings per share) or margin percentages (gross, operating, or net), we cannot calculate the exact effect of the divested business on overall profitability or on any of the company’s margins.

What can be inferred from the data provided

1. Revenue growth is stronger when the divested business is excluded

   • The “excluding divested business” line shows an 18 % increase versus the 11 % increase in total revenue.
     
   • This suggests that the portion of the business that was divested (or the impact of a recent divestiture) was dragging down the overall top‑line growth. In other words, the remaining operating segments grew faster than the company’s total revenue base.

2. Potential margin implications

   • If the divested business historically generated lower gross or operating margins than the core businesses that remain, then excluding it would improve the blended margin for the company.
     
   • Conversely, if the divested unit was a higher‑margin segment, the opposite would be true—its removal would depress the overall margin. The press release does not give any clues about the relative profitability of the divested unit, so we cannot determine which scenario applies.

3. No direct profitability data

   • The release does not present net earnings, operating earnings, EBITDA, or earnings per share (EPS).
     
   • Without those figures, any quantitative statement about “impact on overall profitability” would be speculative.

How you could get a precise answer

• Look for the full earnings release (often posted on the company’s investor‑relations website) that includes the income statement, a reconciliation of GAAP to non‑GAAP measures, and a discussion of segment performance.
  
• Check the Management Discussion & Analysis (MD&A) section of the Form 10‑Q (or Form 8‑K) filed with the SEC for Q2 2025. Companies typically explain how recent divestitures affect both top‑line and bottom‑line results, and they may disclose the margin contribution of the divested segment.
  
• Listen to the earnings call transcript (if available). Executives often comment on the profitability of the divested business and its effect on margins.

Bottom line

Based solely on the excerpt you provided:

• Revenue impact: The divested business’s removal resulted in a higher year‑over‑year revenue growth rate (18 % vs. 11 %).
  
• Profitability & margin impact: No specific data are disclosed, so we cannot quantify the effect on net income, operating income, or any margin percentages. Any assessment of the profitability impact would require additional information from the complete earnings release or SEC filings.