Bowman Consulting Group Ltd. (BWMN) Missed Consensus Estimates, Despite an Earnings Beat

Conestoga Capital Advisors, an asset management company, released its fourth-quarter 2025 investor letter. US equities experienced solid returns in 2025, with double-digit gains across all major indices. A copy of the letter can be downloaded here. In 2025, the Conestoga Micro Cap Composite met its purpose of preserving capital during negative market returns and capturing upside during strong market returns. Micro Caps faced significant volatility in 2025. During the course of events, Conestoga Micro Cap Composite returned -1.91% net of fees in the fourth quarter and 16.24% net of fees for the full year 2025, trailing the Russell Microcap Growth Index’s 2.14% and 21.84% gains in the fourth quarter and full year, respectively. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks like Bowman Consulting Group Ltd. (NASDAQ:BWMN). Bowman Consulting Group Ltd. (NASDAQ:BWMN) offers real estate, energy, infrastructure, and environmental management solutions. The one-month return of Bowman Consulting Group Ltd. (NASDAQ:BWMN) was -6.90%, and its shares gained 60.97% of their value over the last 52 weeks. On February 19, 2026, Bowman Consulting Group Ltd. (NASDAQ:BWMN) stock closed at $33.45 per share with a market capitalization of $581.131 million.

Conestoga Capital Advisors stated the following regarding Bowman Consulting Group Ltd. (NASDAQ:BWMN) in its fourth quarter 2025 investor letter:

"Bowman Consulting Group Ltd. (NASDAQ:BWMN) provides multi-disciplinary engineering, planning, and consulting services to the built environment. Shares retraced gains in the fourth quarter after the company reported third-quarter revenue that significantly missed consensus estimates, despite an earnings beat. The revenue shortfall, combined with subsequent insider selling activity in December, contributed to negative sentiment. We remain focused on BWMN’s long-term opportunity to consolidate the fragmented engineering services market and expand its infrastructure capabilities."

Bowman Consulting Group Ltd. (NASDAQ:BWMN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 14 hedge fund portfolios held Bowman Consulting Group Ltd. (NASDAQ:BWMN) at the end of the third quarter, up from 8 in the previous quarter. While we acknowledge the potential of Bowman Consulting Group Ltd. (NASDAQ:BWMN) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Bowman Consulting Group Ltd. (NASDAQ:BWMN) and shared a list of most promising small-cap industrial stocks under $50. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.