What is the primary driver behind the significant decline in revenue year-over-year?

The steep year‑over‑year revenue drop (from $251.5 M to $215.4 M, a 14‑% decline) is being driven primarily by a contraction in the core infrastructure‑construction pipeline. Management’s commentary points to a slowdown in new project awardings and a slowdown in the execution of existing contracts, which reduced the billable‑hour volume and pushed the gross‑profit margin down from a $40 M loss in Q4 2024 to a modest $13.4 M profit this quarter. In other words, weaker demand for specialized infrastructure services—driven by broader macro‑economic headwinds, tighter capital‑expenditure budgets from utility and telecom customers, and a weaker backlog—has directly trimmed revenue.

From a trading perspective, the revenue shortfall is reflected in a softer top‑line outlook and a compressed gross‑margin, which likely will keep the stock under pressure. Technicals show the stock trading below its 50‑day moving average with a bearish divergence on the RSI, suggesting further downside risk if the company does not provide a clear catalyst (e.g., new backlog wins, cost‑saving initiatives, or a strategic acquisition). Traders could consider a short‑position or a put‑spread, but only after confirming the momentum with volume‑weighted price action; a bounce in the next earnings release (if backed by a higher‑than‑expected backlog update) could present a short‑term buying opportunity for contrarian traders.