Revenue for the quarter reached $54.9 million, up 7 % year‑over‑year and beating the consensus estimate of $53.73 million by $1.17 million. The lift was driven by a 23 % increase in SaaS revenue, reflecting strong demand for the company’s subscription‑based public‑sector solutions and the continued expansion of its cloud‑native platform.
GAAP diluted earnings per share were $0.04, but the adjusted diluted EPS—excluding one‑time items and tax provisions—was $0.27, a $0.0235 (9.5 %) beat over the analyst estimate of $0.2465. The adjusted EPS beat was largely a result of disciplined cost management and a higher mix of high‑margin SaaS contracts, which offset the impact of higher tax provisions that reduced net income.
Net income from continuing operations fell to $1.5 million from $6.3 million year‑over‑year, a decline driven by higher tax provisions and a one‑time charge related to restructuring. The revenue growth, however, was not enough to offset these headwinds, illustrating the company’s ongoing investment in growth initiatives.
Adjusted EBITDA margin for the quarter was 26.2 % of revenue, down from 28.5 % in the same period a year earlier. The compression reflects increased operating costs associated with scaling AI‑driven product enhancements, but the margin remains healthy relative to the company’s historical performance.
Management reiterated its 2026 outlook, projecting revenue of $217 million to $232 million and adjusted EBITDA of $58.5 million to $65 million—unchanged from the prior guidance. The guidance signals confidence in continued demand for public‑sector software, while the modest range reflects caution amid slower budget cycles in the public sector.
The company ended the quarter with $67 million in cash and no debt, providing ample flexibility for future acquisitions and share repurchases. The strong liquidity position supports the company’s strategy to deepen its public‑sector footprint and invest in AI‑driven product enhancements.
CEO Greg Daily highlighted the 23 % growth in SaaS revenue, the new contract with the Supreme Court of Appeals of West Virginia, and the company’s focus on AI enhancements. He emphasized that the company’s cash position allows it to pursue strategic opportunities while maintaining a disciplined approach to growth.
Investors reacted negatively to the guidance, despite the earnings beat, indicating that the market was concerned about the pace of future growth. The guidance’s modest range and the company’s focus on continued investment in AI and public‑sector contracts were seen as potential headwinds for short‑term growth expectations.
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