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Speaker #5: Good day, ladies and
Operator: Good day, ladies and gentlemen, and welcome to Consensus Q4 2025 Earnings Call. My name is Paul, and I will be the operator assisting you today. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. On this call from Consensus will be Scott Turicchi, CEO; Jim Malone, CFO; Johnny Hecker, CRO and Executive Vice President of Operations; and Adam Varon, Senior Vice President of Finance. I will now turn the call over to Adam Varon, Senior Vice President of Finance at Consensus. Thank you. You may begin.
Operator: Good day, ladies and gentlemen, and welcome to Consensus Q4 2025 Earnings Call. My name is Paul, and I will be the operator assisting you today. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. On this call from Consensus will be Scott Turicchi, CEO; Jim Malone, CFO; Johnny Hecker, CRO and Executive Vice President of Operations; and Adam Varon, Senior Vice President of Finance. I will now turn the call over to Adam Varon, Senior Vice President of Finance at Consensus. Thank you. You may begin.
Speaker #5: Gentlemen, and welcome to the Consensus moment Q4 2025 earnings call. My name is Paul, and I will be the operator assisting you today. At this time, all participants are in a listen-only mode.
Speaker #5: A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press *0 on your telephone keypad. On this call from Consensus will be Scott Turicchi, CEO, Jim Malone, CFO, Johnny Hecker, CRO, and executive vice president of operations, president of finance.
Speaker #5: I will now Varon, senior vice president of finance at turn the call over to Adam Consensus. Thank you. You may and Adam Varon, senior vice
Speaker #5: begin. Good
Speaker #6: Good morning and welcome to the Consensus Investor Call to discuss our Q4 and year-end 2025 financial results, other key information, and our 2026 full-year and Q1 2026 guidance.
Adam Varon: Good morning, and welcome to the Consensus investor call to discuss our Q4 and year-end 2025 financial results, other key information, and our 2026 full year and Q1 2026 guidance. Joining me today are Scott Turicchi, CEO; Johnny Hecker, CRO and EVP of Operations; and Jim Malone, CFO. The earnings call will begin with Scott providing opening remarks. Johnny will give an update on operational progress since our Q3 2025 investor call, and then Jim will discuss Q4 2025 and full year 2025 financial results, then provide our full year 2026 and Q1 2026 guidance range. After we finish our prepared remarks, we will conduct a Q&A session. At that time, the operator will instruct you on the procedures for asking a question. Before we begin our prepared remarks, allow me to direct you to our forward-looking statements and risk factors on slide two of our investor presentation.
Adam Varon: Good morning, and welcome to the Consensus investor call to discuss our Q4 and year-end 2025 financial results, other key information, and our 2026 full year and Q1 2026 guidance. Joining me today are Scott Turicchi, CEO; Johnny Hecker, CRO and EVP of Operations; and Jim Malone, CFO. The earnings call will begin with Scott providing opening remarks. Johnny will give an update on operational progress since our Q3 2025 investor call, and then Jim will discuss Q4 2025 and full year 2025 financial results, then provide our full year 2026 and Q1 2026 guidance range. After we finish our prepared remarks, we will conduct a Q&A session. At that time, the operator will instruct you on the procedures for asking a question. Before we begin our prepared remarks, allow me to direct you to our forward-looking statements and risk factors on slide two of our investor presentation.
Speaker #6: Joining me today CRO and EVP of operations; and Jim Malone, are Scott Turicchi, remarks. Johnny will give an update CEO; Johnny Hecker, on operational progress since our Q3 CFO.
Speaker #6: with Scott providing opening 2025 and full year Jim will discuss Q4 year 2026 and Q1 2025 financial 2026 guidance range. After we finish The earnings call will begin our prepared remarks, we will conduct a Q&A session.
Speaker #6: At that time, the operator will instruct you on the procedures for asking a remarks, allow me to direct you to our forward-looking statements and risk factors on slide 2 presentation.
Speaker #6: As you know, this call and the webcast will include question. forward-looking statements. Such statements may involve risks and results, then provide our full uncertainties that would cause Before we begin our prepared differ materially from the anticipated results.
Adam Varon: As you know, this call and the webcast will include forward-looking statements. Such statements may involve risks and uncertainties that would cause actual results to differ materially from the anticipated results. Some of those risks and uncertainties include, but are not limited to, the risk factors that we have disclosed in our regulatory filings, including our annual 10-K and quarterly 10-Q SEC filings. Now, let me turn the call over to Scott for his opening remarks.
Adam Varon: As you know, this call and the webcast will include forward-looking statements. Such statements may involve risks and uncertainties that would cause actual results to differ materially from the anticipated results. Some of those risks and uncertainties include, but are not limited to, the risk factors that we have disclosed in our regulatory filings, including our annual 10-K and quarterly 10-Q SEC filings. Now, let me turn the call over to Scott for his opening remarks.
Speaker #6: Some of those actual results to risks and uncertainties of our investor include, but are not limited to, the risk factors that we have disclosed in our regulatory filings, including our annual 10-K and quarterly 10-Q. Now, let me turn the call to SEC filings. remarks.
Speaker #6: Some of those actual results to risks and uncertainties of our investor include but are not limited to the risk factors that we have disclosed in our regulatory filings, including our annual 10-K and quarterly 10-Q Now, let me turn the call SEC filings.
Scott Turicchi: Thank you, Adam. I'm extremely pleased with both the Q4 and full year 2025 results. I believe that we've closed the first phase of Consensus history and look forward to embarking on the next phase, which begins now. At the time of the spin, 4+ years ago, we had $805 million of debt with a leverage of 4x gross debt to adjusted EBITDA, a majority SoHo revenue business, tech debt, core product offerings that were cloud fax only, and a thinly staffed company with 450 people. And all of this is before inflation spiked in 2022, adding an additional operational headwind. Material progress has been made on all fronts.
Scott Turicchi: Thank you, Adam. I'm extremely pleased with both the Q4 and full year 2025 results. I believe that we've closed the first phase of Consensus history and look forward to embarking on the next phase, which begins now. At the time of the spin, 4+ years ago, we had $805 million of debt with a leverage of 4x gross debt to adjusted EBITDA, a majority SoHo revenue business, tech debt, core product offerings that were cloud fax only, and a thinly staffed company with 450 people. And all of this is before inflation spiked in 2022, adding an additional operational headwind. Material progress has been made on all fronts.
Speaker #7: extremely pleased with both the fourth quarter and full year 2025 results. I believe that we've closed the first phase of next phase, which begins now.
Speaker #7: At the time of the spin, four-plus years ago, we had 805 million of debt, with a leverage of four times gross debt to adjusted business, tech debt, core EBITDA.
Speaker #7: Only, and a thinly staffed company with 450 people. And all of this was before inflation spiked in 2022, adding an additional Consensus's history, and look forward to embarking on the – a majority. SoHo revenue progress has been made on all fronts.
Speaker #7: Through the hard work of our employees—much of it a grind, with operational headwinds—Consensus has generated more than $800 million of adjusted EBITDA since spin.
Scott Turicchi: Through the hard work of our employees, much of it a grind, Consensus has generated more than $800 million of Adjusted EBITDA since spin, resulting in free cash flow of approximately $375 million, after investing approximately $150 million in the business. This went to retiring tech debt, enhancing our core fax solutions, as well as adding other solutions benefiting primarily the healthcare sector. The free cash flow has been utilized primarily for the retirement of $243 million of debt, bringing us down to $562 million of debt at year-end, and hitting our initial target leverage of 3x total debt to Adjusted EBITDA.
Scott Turicchi: Through the hard work of our employees, much of it a grind, Consensus has generated more than $800 million of Adjusted EBITDA since spin, resulting in free cash flow of approximately $375 million, after investing approximately $150 million in the business. This went to retiring tech debt, enhancing our core fax solutions, as well as adding other solutions benefiting primarily the healthcare sector. The free cash flow has been utilized primarily for the retirement of $243 million of debt, bringing us down to $562 million of debt at year-end, and hitting our initial target leverage of 3x total debt to Adjusted EBITDA.
Speaker #7: Resulting in free cash flow of approximately $375 million, after investing approximately $150 million in the business. This went to retiring tech debt enhancing our core fact solutions as well as adding other solutions sector.
Speaker #7: The free cash flow has been benefiting primarily the healthcare, $243 million of debt at year-end, and hitting our initial target leverage of three times total debt. It was utilized primarily for the retirement of debt, bringing us down to $562 million adjusted EBITDA.
Speaker #7: In addition, given the attractive valuation of our stock throughout most of the past four years, we have been able to repurchase approximately $2.2 million shares, which represents about 10% of the shares outstanding at spin.
Scott Turicchi: In addition, given the attractive valuation of our stock throughout most of the past four years, we have been able to repurchase $57 million worth of our stock, or approximately 2.2 million shares, which represents about 10% of the shares outstanding at spin. We have added about 75 employees to our team over this time frame, and we have shifted the business to its corporate focus. So I want to extend a big thank you to all of our employees who have been part of this transformation. Before turning the call over to Johnny, who will provide you with much detail regarding both the quarter and the full fiscal year, I would like to note a few items. Historically, Q4 is always a more challenging quarter to forecast, given holiday closures, vacations, and unpredictable weather.
Scott Turicchi: In addition, given the attractive valuation of our stock throughout most of the past four years, we have been able to repurchase $57 million worth of our stock, or approximately 2.2 million shares, which represents about 10% of the shares outstanding at spin. We have added about 75 employees to our team over this time frame, and we have shifted the business to its corporate focus. So I want to extend a big thank you to all of our employees who have been part of this transformation. Before turning the call over to Johnny, who will provide you with much detail regarding both the quarter and the full fiscal year, I would like to note a few items. Historically, Q4 is always a more challenging quarter to forecast, given holiday closures, vacations, and unpredictable weather.
Speaker #7: We have added about $75 employees to our team. Over this $57 million worth of our stock, or timeframe, we have shifted the business to its corporate focus.
Speaker #7: So I want to extend a big thank you to all of this transformation. Before turning the call over to Johnny, who will provide you with much detail regarding both the quarter and the full fiscal year, I would like to note a few items.
Speaker #7: Historically, Q4 has always been more challenging quarter to forecast given holiday closures, vacations, and unpredictable weather. I'm highly encouraged that we beat our top-line objectives for the from Q3, despite having $1.6 fewer business days in Q4 2025, and saw the corporate channel exit with a $7.3% growth rate.
Scott Turicchi: I'm highly encouraged that we beat our top-line objectives for the quarter, saw sequential growth in revenue from Q3, despite having 1.6 fewer business days in Q4 2025, and saw the corporate channel exit with a 7.3% growth rate, positioning us favorably for 2026. This is the third consecutive quarter of total revenue growth for the company. The SOHO channel also beat our forecast, as we saw improvement in customer acquisition in the latter part of Q4, which is continuing thus far in 2026. We remain focused on our cost structure while adding employees into our product and go-to-market operations during the quarter. We've produced positive free cash flow in our most challenging quarter, and more importantly, hit a record $106 million of free cash flow for the year, up 20% from 2024 on flat revenues.
Scott Turicchi: I'm highly encouraged that we beat our top-line objectives for the quarter, saw sequential growth in revenue from Q3, despite having 1.6 fewer business days in Q4 2025, and saw the corporate channel exit with a 7.3% growth rate, positioning us favorably for 2026. This is the third consecutive quarter of total revenue growth for the company. The SOHO channel also beat our forecast, as we saw improvement in customer acquisition in the latter part of Q4, which is continuing thus far in 2026. We remain focused on our cost structure while adding employees into our product and go-to-market operations during the quarter. We've produced positive free cash flow in our most challenging quarter, and more importantly, hit a record $106 million of free cash flow for the year, up 20% from 2024 on flat revenues.
Speaker #7: Positioning us favorably for our employees who have been part of 2026. This is the quarter, saw sequential growth in revenue third consecutive quarter of total revenue SoHo channel also beat our forecast as we saw improvement in customer acquisition in the latter part of Q4, growth for the company.
Speaker #7: which has continuing, thus far, in remain focused on our cost structure, 2026. while adding employees into our product and We The go-to-market operations during the cash flow in our most challenging quarter and, more importantly, hit cash flow for the year, up 20% from 2024 We are well positioned for the next phase of Consensus.
Scott Turicchi: We are well-positioned for the next phase of Consensus. Johnny and Jim will provide details regarding our guidance for 2026, but I will make a few observations. We see a continuation of the trend for accelerating corporate growth, approximately 9% at the midpoint of our guidance, and a similar rate of decline in SOHO as in 2025, approximately a 10% decline. This combination will have us grow approximately 2% at the midpoint of our range for the year in revenues. From an operational perspective, we expect a modest flow-through of the incremental revenue to Adjusted EBITDA, as we see increases in our cost structure roughly in line with inflation, and have additional people investments that we'll make in the business, primarily, again, in product development and go-to-market operations. We do not have any substantial maturities in our debt until 2028.
Scott Turicchi: We are well-positioned for the next phase of Consensus. Johnny and Jim will provide details regarding our guidance for 2026, but I will make a few observations. We see a continuation of the trend for accelerating corporate growth, approximately 9% at the midpoint of our guidance, and a similar rate of decline in SOHO as in 2025, approximately a 10% decline. This combination will have us grow approximately 2% at the midpoint of our range for the year in revenues. From an operational perspective, we expect a modest flow-through of the incremental revenue to Adjusted EBITDA, as we see increases in our cost structure roughly in line with inflation, and have additional people investments that we'll make in the business, primarily, again, in product development and go-to-market operations. We do not have any substantial maturities in our debt until 2028.
Speaker #7: 2026, but we will make a record $106 million of free—few observations. We see Johnny and Jim will [be a] continuation of the trend for accelerating corporate growth, approximately 9% at the midpoint of our guidance, and a similar rate of decline in SoHo as in 2025, approximately a 10% decline.
Speaker #7: This combination will have us on flat revenues quarter. We grow approximately 2% at the midpoint of our range for the year in revenues. We've produced positive free revenues.
Speaker #7: From an operational perspective, we tie the incremental revenue to adjusted EBITDA. As we see increases in our costs, we expect a modest flow-through of inflation and have additional people investments that we'll make in the business, primarily again in product structure, roughly in line with development and go-to-market operations.
Speaker #7: We do not have any substantial maturities in our debt until 2028. We will monitor the markets to see if an opportunistic debt refinancing can be achieved, but more likely, it will occur sometime in 2027.
Scott Turicchi: We will monitor the debt markets to see if an opportunistic refinancing can be achieved, but more likely it will occur sometime in 2027. We expect free cash flow to approximate the record level of 2025, and look to be more aggressive in our share repurchase program this year, given the free cash flow yield on our stock is more than three times that of our debt costs. I will now turn the call over to Johnny.
Scott Turicchi: We will monitor the debt markets to see if an opportunistic refinancing can be achieved, but more likely it will occur sometime in 2027. We expect free cash flow to approximate the record level of 2025, and look to be more aggressive in our share repurchase program this year, given the free cash flow yield on our stock is more than three times that of our debt costs. I will now turn the call over to Johnny.
Speaker #7: We
Speaker #1: expect We flow to approximate the record free cash of be more share repurchase this year . cash program 2025 and look to yield on our stock more than debt that of our I will costs , our share is repurchase three times year .
Speaker #1: free cash flow yield on our stock is more that of our Given the debt costs . will now turn the call over to Johnny
Johnny Hecker: Thank you, Scott, and hello, everyone. I want to frame my operational update today, not by starting with a list of numbers, but by highlighting the fundamental transformation of our business composition. We continue to see a decisive shift in how our customers utilize our network. This has been going on for a few quarters and has become an established trajectory, a significant acceleration in the utilization of our services within the corporate channel, showing a year-over-year increase in usage per business day that has remained in the double digits for 5 consecutive quarters. For several quarters now, we have witnessed large healthcare organizations shift to the cloud. This is coupled with the desire to eliminate manual data entry and to improve workflows in order to increase productivity, reduce costs, and accelerate revenue.
Johnny Hecker: Thank you, Scott, and hello, everyone. I want to frame my operational update today, not by starting with a list of numbers, but by highlighting the fundamental transformation of our business composition. We continue to see a decisive shift in how our customers utilize our network. This has been going on for a few quarters and has become an established trajectory, a significant acceleration in the utilization of our services within the corporate channel, showing a year-over-year increase in usage per business day that has remained in the double digits for 5 consecutive quarters. For several quarters now, we have witnessed large healthcare organizations shift to the cloud. This is coupled with the desire to eliminate manual data entry and to improve workflows in order to increase productivity, reduce costs, and accelerate revenue.
Speaker #2: Thank hello program this I
Speaker #2: frame my operational Scott and list of numbers , but . by highlighting the fundamental transformation of our business composition . We a decisive shift in with a customers our
Speaker #2: utilize . has been going on for a quarters few and has become an trajectory . A This significant acceleration in the our services utilization of channel , showing over year a year increase in usage per business day that Not by remained in the double for digits five consecutive quarters .
Speaker #2: corporate network we benefit from largest same growth and as they result of We grow strategy to build a continue to see deliberate usage It is This is highly recurring platform we the .
Speaker #2: For several quarters . Now . than three times have
Speaker #2: cloud organizations . This is the coupled desire to eliminate manual today . data entry and to improve workflows in with their , reduce productivity costs , within the accelerate and order to .
Speaker #2: cloud organizations . This is the coupled desire to eliminate manual today . data entry and to improve workflows in with their , reduce productivity costs , within the accelerate and revenue It is passive transport network from a layer into an large healthcare operational , driving has contributor notable per surge in At the time , day .
Johnny Hecker: It is transforming our network from a passive transport layer into an operational contributor, driving notable surge in usage per business day. At the same time, we benefit from our largest customers and channel partners' organic growth. As they grow, we grow. This is not accidental. It is the result of our deliberate strategy to build a highly durable, recurring revenue platform. Operationally, we are seeing the continuation of a powerful trend, corporate revenue solidifying its position as the substantial majority of our total top line. To put this in perspective, in Q4 2021, our revenue split was roughly 51% SOHO and 49% corporate. However, by 2024, our corporate revenue represented 60%. In 2025, that figure rose to 64%, and based on our current path, we project it will reach 68% in 2026.
Johnny Hecker: It is transforming our network from a passive transport layer into an operational contributor, driving notable surge in usage per business day. At the same time, we benefit from our largest customers and channel partners' organic growth. As they grow, we grow. This is not accidental. It is the result of our deliberate strategy to build a highly durable, recurring revenue platform. Operationally, we are seeing the continuation of a powerful trend, corporate revenue solidifying its position as the substantial majority of our total top line. To put this in perspective, in Q4 2021, our revenue split was roughly 51% SOHO and 49% corporate. However, by 2024, our corporate revenue represented 60%. In 2025, that figure rose to 64%, and based on our current path, we project it will reach 68% in 2026.
Speaker #2: Operationally, we are seeing a powerful trend. Corporate revenue has established a substantial position as the continuation of our top line growth. In perspective, in Q4 2021, our split was roughly 51%.
Speaker #2: and Soho 49% corporate . However , by 2024 , not corporate 2025 , In that figure revenue to revenue path , rose we project , it will our in 2026 .
Speaker #2: and Soho 49% corporate . However , by 2024 , not corporate 2025 , In that figure revenue to revenue path , rose we project , it will 64% .
Johnny Hecker: This confirms that we have successfully shifted our center of gravity to our highest value asset. The fourth quarter served as a powerful evidence of this strategy. We delivered a record $56.8 million in corporate revenue, representing a 7.3% year-over-year increase, compared to $52.9 million in Q4 2024. Sequentially, we drove a notable increase from $56.3 million in the prior quarter, despite having approximately 1.6 less business days in Q4. This performance is significant. It breaks a historical seasonal pattern of sequential decline in Q4 and marks our best corporate growth rate since Q4 of 2022.
Johnny Hecker: This confirms that we have successfully shifted our center of gravity to our highest value asset. The fourth quarter served as a powerful evidence of this strategy. We delivered a record $56.8 million in corporate revenue, representing a 7.3% year-over-year increase, compared to $52.9 million in Q4 2024. Sequentially, we drove a notable increase from $56.3 million in the prior quarter, despite having approximately 1.6 less business days in Q4. This performance is significant. It breaks a historical seasonal pattern of sequential decline in Q4 and marks our best corporate growth rate since Q4 of 2022.
Speaker #2: This have successfully shifted center of increase represented 60% . to gravity highest . value asset The fourth quarter served as a powerful . of this partners .
Speaker #2: . And based delivered a record our $56.8 million in 68% our , representing reach corporate a 7.3% year over year channel increase confirms that we $52.9 million in Q4 strategy 2020 .
Speaker #2: For sequentially , we drove a notable increase from compared to prior quarter , despite having approximately business days in Q4 . This performance is significant .
Speaker #2: It historical seasonal pattern of sequential 1.6 less decline in $56.3 million in the Q4 breaks a marks best corporate growth rate Q4 of 2022 .
Johnny Hecker: For the full fiscal year, we delivered $222.7 million in corporate channel revenue, a 6.5% growth rate that validates our acceleration path and puts us ahead of the midpoint of the guidance we provided in February 2025. We drove this growth through two primary operational engines, healthcare and the public sector. In healthcare, we're successfully executing on our strategy to expand our trusted network, which serves as the critical foundation for our platformization journey. By entrenching our position as the secure transfer layer for sensitive data, we are creating the necessary infrastructure to layer on our advanced interoperability tools, effectively deepening our relationship and future wallet share with existing customers. We are already seeing the strategic logic validated by our deal quality.
Johnny Hecker: For the full fiscal year, we delivered $222.7 million in corporate channel revenue, a 6.5% growth rate that validates our acceleration path and puts us ahead of the midpoint of the guidance we provided in February 2025. We drove this growth through two primary operational engines, healthcare and the public sector. In healthcare, we're successfully executing on our strategy to expand our trusted network, which serves as the critical foundation for our platformization journey. By entrenching our position as the secure transfer layer for sensitive data, we are creating the necessary infrastructure to layer on our advanced interoperability tools, effectively deepening our relationship and future wallet share with existing customers. We are already seeing the strategic logic validated by our deal quality.
Speaker #2: For the full fiscal year , we delivered $222.7 million in revenue , and a 6.5% growth rate validates our corporate channel path and that ahead of the guidance we the puts us provided in midpoint of of 2025 .
Speaker #2: We drove this growth through two primary operational engines and the in successfully executing on strategy to public expand trusted our network , serves as the critical which our our our entrenching position secure ization transport layer sensitive for We by foundation for necessary sector infrastructure to as the , healthcare platform interoperability our our , effectively acceleration deepening our and future data .
Johnny Hecker: We're observing a shift where healthcare clients are moving beyond simple connectivity and beginning to bundle our eFax Clarity AI solution to solve specific workflow bottlenecks. We're no longer just selling a connection; we're tackling a labor problem. This shift in customer conversation from price per page to value per workflow is the leading indicator that our platform thesis is taking hold. In the public sector, ECFax, our FedRAMP High certified eFax offering for the government, is experiencing high demand across the public sector and non-governmental organizations of all sizes mandated to migrate to secure FedRAMP solutions, such as contractors supporting the government in claims processing, waste, fraud, and abuse prevention, or to operate government facilities. This surging demand is translating directly into a robust and growing pipeline, and we're actively investing in the expansion of our dedicated team and go-to-market capabilities to capture this opportunity.
Johnny Hecker: We're observing a shift where healthcare clients are moving beyond simple connectivity and beginning to bundle our eFax Clarity AI solution to solve specific workflow bottlenecks. We're no longer just selling a connection; we're tackling a labor problem. This shift in customer conversation from price per page to value per workflow is the leading indicator that our platform thesis is taking hold. In the public sector, ECFax, our FedRAMP High certified eFax offering for the government, is experiencing high demand across the public sector and non-governmental organizations of all sizes mandated to migrate to secure FedRAMP solutions, such as contractors supporting the government in claims processing, waste, fraud, and abuse prevention, or to operate government facilities. This surging demand is translating directly into a robust and growing pipeline, and we're actively investing in the expansion of our dedicated team and go-to-market capabilities to capture this opportunity.
Speaker #2: wallet advanced existing relationship already seeing the on validated by our with serving quality group deal where healthcare clients are strategic simple moving beyond connectivity beginning to effects AI We are solution to bundle solve a shift specific workflow .
Speaker #2: are no . selling We connection tackling a our problem . . healthcare . We're shift in We're This a longer from customer page to value per workflow price per the leading our indicator that platform taking is hold public sector .
Speaker #2: Equifax just – thesis is certified – our government is experiencing high demand across the public sector and non-government organizations of all sizes to migrate to FedRAMP solutions. Secure contractors supporting the government are in demand for processing waste, fraud, and all FedRAMP High abuse prevention claims.
Speaker #2: Operate government facilities . demand in is directly into a or and growing robust pipeline , and we're investing in actively translating the expansion team market of our to capture this capabilities opportunity the Department of Affairs , the VA be a continues to major source of growth and crucial reference This surge . account .
Speaker #2: Operate government facilities . demand in is directly into a or and growing robust pipeline , and we're investing in actively translating the expansion team market of our to capture this capabilities opportunity the Department of Affairs , the VA be a continues to major source of growth and crucial reference This surge .
Johnny Hecker: The Department of Veterans Affairs, the VA, continues to be a major source of growth and a crucial reference account. It demonstrates our capability to operate securely and at scale, meeting the highest standards. Furthermore, the VA exceeded our 2025 expectations and is projected to contribute in excess of $9 million this year. Additionally, our state, local, and education, the SLED business, has established itself as a second relevant pillar, growing significantly faster than the commercial space. I'm happy to report that our corporate revenue retention rate stands at 101.3%, continuing our trend of operating well above the 100% target. This compares to 100.5% in Q4 of last year. Our total corporate customer base is approximately 65,000, representing an 11.3% increase year-over-year.
Johnny Hecker: The Department of Veterans Affairs, the VA, continues to be a major source of growth and a crucial reference account. It demonstrates our capability to operate securely and at scale, meeting the highest standards. Furthermore, the VA exceeded our 2025 expectations and is projected to contribute in excess of $9 million this year. Additionally, our state, local, and education, the SLED business, has established itself as a second relevant pillar, growing significantly faster than the commercial space. I'm happy to report that our corporate revenue retention rate stands at 101.3%, continuing our trend of operating well above the 100% target. This compares to 100.5% in Q4 of last year. Our total corporate customer base is approximately 65,000, representing an 11.3% increase year-over-year.
Speaker #2: and go to our demonstrates capability to operate dedicated securely scale , meeting the highest standards . the VA Veterans exceeded and at a and is projected to contribute in excess of $9 million this Additionally , Furthermore , state , local and education The the business established Sled itself as a second relevant year growing .
Speaker #2: Than the faster commercial, happy to. I'm revenue retention rate at 101.3%, continuing our trend of operating well above the 100% target.
Speaker #2: stands has 100.5% in Q4 This of last year . Our total corporate customer space corporate approximately 65,000 , representing an year 11.3% . To increase both stability We're and distinct barbell reach .
Johnny Hecker: To ensure both stability and reach, we're executing a distinct barbell strategy, where the quality of this revenue is as important as the quantity. On the enterprise side, the average revenue per account, ARPA, of our non-eFax Protect cohort, has now increased for 4 consecutive quarters and is well above $300 per month, while the account churn for the same cohort is the lowest in 7 quarters. This confirms that our largest customers are finding more value in our platform and expanding their usage. On the volume side, we added approximately 7,000 new paid accounts in the quarter on a gross basis. This was driven significantly by our eFax Protect e-commerce engine. We successfully navigated the search environment shifts and e-commerce headwinds discussed last quarter, stabilizing our subscriber funnel. Turning to our SoHo business, our operational focus remains on the efficiency and maximizing contribution margin.
Johnny Hecker: To ensure both stability and reach, we're executing a distinct barbell strategy, where the quality of this revenue is as important as the quantity. On the enterprise side, the average revenue per account, ARPA, of our non-eFax Protect cohort, has now increased for 4 consecutive quarters and is well above $300 per month, while the account churn for the same cohort is the lowest in 7 quarters. This confirms that our largest customers are finding more value in our platform and expanding their usage. On the volume side, we added approximately 7,000 new paid accounts in the quarter on a gross basis. This was driven significantly by our eFax Protect e-commerce engine. We successfully navigated the search environment shifts and e-commerce headwinds discussed last quarter, stabilizing our subscriber funnel. Turning to our SoHo business, our operational focus remains on the efficiency and maximizing contribution margin.
Speaker #2: executing strategy where quality of this revenue is as important the quantity the enterprise on average as the side , the per of non FX protect cohort a has our increased for four consecutive quarters and account is well above $300 per account churn same is the cohort for the lowest seven quarters .
Speaker #2: This confirms that our largest more in and revenue usage month , while On expanding side , we added volume approximately accounts in the on a gross This was driven paid the 7000 new significantly quarter FX basis .
Speaker #2: our e-commerce . We by and headwinds , quarter our , stabilizing protect shifts subscriber discussed last our Soho business , our Turning to focus the efficiency and maximizing operational margin for the quarter was $30.3 million , a funnel .
Speaker #2: E-commerce was ahead of contribution expectations outlined in our call for the full year. We delivered revenue for fiscal 2025 of $127 million in our channel, with a Q3 10% decline versus 2024.
Johnny Hecker: Revenue for the quarter was $30.3 million, a decrease of 11.1% year-over-year, slightly ahead of our expectations outlined in our Q3 call. For the full fiscal year, we delivered $127 million in SoHo channel revenue, a 10% decline versus 2024. We effectively managed our subscriber base to approximately 638,000, with ARPA holding steady at $15.55. Crucially, we're actively navigating the shifts of the search environment that created the headwinds we forecasted. While the first half of Q4 presented challenges, our operational turnaround plan yielded measurable success by the end of the quarter. Despite the traditionally soft holiday season, we saw sign-up metrics improve, and we're continuing to see those improvements into Q1 of 2026.
Johnny Hecker: Revenue for the quarter was $30.3 million, a decrease of 11.1% year-over-year, slightly ahead of our expectations outlined in our Q3 call. For the full fiscal year, we delivered $127 million in SoHo channel revenue, a 10% decline versus 2024. We effectively managed our subscriber base to approximately 638,000, with ARPA holding steady at $15.55. Crucially, we're actively navigating the shifts of the search environment that created the headwinds we forecasted. While the first half of Q4 presented challenges, our operational turnaround plan yielded measurable success by the end of the quarter. Despite the traditionally soft holiday season, we saw sign-up metrics improve, and we're continuing to see those improvements into Q1 of 2026.
Speaker #2: We effectively managed our subscriber revenue , approximately 638,000 with base to Arpa holding at $15.55 . we're . Crucially , actively navigating the shifts in the search For the that we forecasted created the Q4 While presented operational challenges , our plan yielded steady measurable end of success .
Speaker #2: quarter the By the Despite the soft . traditionally season , up holiday metrics saw sign we and we're improve see continuing to those improvements environment into turnaround Q1 .
Johnny Hecker: Most importantly, we have successfully reinvented and are managing this channel as the strategic cash engine. This managed decline in revenue is a deliberate choice, acceptable only when offset by increased efficiency or when explicitly funding our corporate channel strategy. This discipline ensures we're maximizing the long-term value of this asset to fuel our broader transformation. Let me close my remarks by looking ahead. We view 2025 as the foundational investment year that has set the stage for 2026 and beyond. As a result of our go-to-market realignment, we are maturing as an organization, moving upmarket and deepening our footprint in our key verticals. You will see our revenue mix continue to shift toward corporate and our advanced product suite. While Cloud Fax remains a robust growth driver, 2025 showed the first real success with our AI-based eFax Clarity offering....
Johnny Hecker: Most importantly, we have successfully reinvented and are managing this channel as the strategic cash engine. This managed decline in revenue is a deliberate choice, acceptable only when offset by increased efficiency or when explicitly funding our corporate channel strategy. This discipline ensures we're maximizing the long-term value of this asset to fuel our broader transformation. Let me close my remarks by looking ahead. We view 2025 as the foundational investment year that has set the stage for 2026 and beyond. As a result of our go-to-market realignment, we are maturing as an organization, moving upmarket and deepening our footprint in our key verticals. You will see our revenue mix continue to shift toward corporate and our advanced product suite. While Cloud Fax remains a robust growth driver, 2025 showed the first real success with our AI-based eFax Clarity offering....
Speaker #2: Most we have reinvented and successfully are channel as importantly , managing managed decline in Strategic This a deliberate of 2026 . , acceptable only choice offset revenue by increased or when efficiency corporate our explicitly funding strategy channel .
Speaker #2: discipline ensures we're This maximizing the long term value of asset to fuel our broader transformation . close my Let me remarks by ahead with looking 2025 as the foundational that set the stage for 2026 and beyond .
Speaker #2: year result of As a our go to realignment , we are maturing as an organization , market this deepening and footprint in verticals .
Speaker #2: year result of As a our go to realignment , we are maturing as an organization , market this deepening and footprint in market our You mix continue to shift toward corporate advanced our key While cloud product remains a growth driver .
Johnny Hecker: While total revenue contribution is still early, the unit economic multiplier is key for our future growth. We're excited about the green shoots, revenue contribution, and expanding install base, solid exit run rate into 2026, increased number of POCs, and a clear go-to-market focus for 2026. While we don't and won't publish line item product revenues, I'm excited to share that we have a clear line of sight to multimillion-dollar revenue contribution from eFax Clarity in 2026. The public sector and VA wins are excellent indicators of our ability to grow outside our traditional comfort zone, and we are on track to prove it again with our advanced product suite. We remain laser-focused on our key targets, returning to total growth, setting us up for double-digit growth in the corporate channel, and expanding our advanced product footprint.
Johnny Hecker: While total revenue contribution is still early, the unit economic multiplier is key for our future growth. We're excited about the green shoots, revenue contribution, and expanding install base, solid exit run rate into 2026, increased number of POCs, and a clear go-to-market focus for 2026. While we don't and won't publish line item product revenues, I'm excited to share that we have a clear line of sight to multimillion-dollar revenue contribution from eFax Clarity in 2026. The public sector and VA wins are excellent indicators of our ability to grow outside our traditional comfort zone, and we are on track to prove it again with our advanced product suite. We remain laser-focused on our key targets, returning to total growth, setting us up for double-digit growth in the corporate channel, and expanding our advanced product footprint.
Speaker #2: 2025 showed the success with first real AI robust clarity revenue offering FX and our revenue . early , While the unit multiplier economic key for our is We're excited about the still moving up contribution and expanding base shoots .
Speaker #2: 2025 showed the success with first real AI robust clarity revenue offering FX and our revenue . early , While the unit multiplier economic key for our is We're excited about the still moving up contribution and expanding base green future exit Solid run rate revenue number growth .
Speaker #2: of a 2026 . market clear go focus for 2026 . While we don't publish line won't item product installed revenues , to share I'm line of have a clear multimillion dollar revenue to contribution from FX .
Speaker #2: sight in 2026 . excited The sector and VA POCs excellent indicators of our ability to grow outside our comfort traditional wins are track to on prove our again with product it suite public .
Speaker #2: Clarity targets our total growth us up for double growth in , setting the digit corporate channel focused on advanced Finally , . I want to sincere to our entire gratitude for the and to our team their We remain customers and continued trust product I will hand the call collaboration .
Johnny Hecker: Finally, I want to express my sincere gratitude to our entire team for the execution during this transformative year and to our customers and partners for their continued trust and collaboration. With that, I will hand the call over to our CFO, Jim Malone, to provide the detailed financial update and our 2026 guidance. Jim?
Johnny Hecker: Finally, I want to express my sincere gratitude to our entire team for the execution during this transformative year and to our customers and partners for their continued trust and collaboration. With that, I will hand the call over to our CFO, Jim Malone, to provide the detailed financial update and our 2026 guidance. Jim?
Speaker #2: Maloney , to provide the detailed update and our my express our Jim key .
James Malone: Thank you, Johnny, and good morning, everyone. In our press release and on the earnings call today, we are discussing Q4 2025 and full year 2025 results, plus 2026 full year and Q1 guidance. We expect to file our 10-K within the next few business days. Starting with Q4 2025 corporate results. Q4 2025, a record revenue of $56.8 million, increased $3.9 million, or 7.3% versus prior year, performing better than expectations. It was our highest quarterly year-over-year growth rate in 2025, and broke a historical trend of Q4 sequential revenue declines. It also represents the best year-over-year corporate growth rate since Q4 2022. Revenue delivered a trailing twelve-month revenue retention rate of 101.3%, an improvement of approximately 80 basis points from the prior comparable period.
James Malone: Thank you, Johnny, and good morning, everyone. In our press release and on the earnings call today, we are discussing Q4 2025 and full year 2025 results, plus 2026 full year and Q1 guidance. We expect to file our 10-K within the next few business days. Starting with Q4 2025 corporate results. Q4 2025, a record revenue of $56.8 million, increased $3.9 million, or 7.3% versus prior year, performing better than expectations. It was our highest quarterly year-over-year growth rate in 2025, and broke a historical trend of Q4 sequential revenue declines. It also represents the best year-over-year corporate growth rate since Q4 2022. Revenue delivered a trailing twelve-month revenue retention rate of 101.3%, an improvement of approximately 80 basis points from the prior comparable period.
Speaker #3: Thank you .
Speaker #3: morning , transformative everyone . press partners for and on the earnings , we Our discussing today release and 2025 full year 2025 results call plus Q4 year 2026 full quarter and .
Speaker #3: We expect to, within our business, in the next few days, start Q4 2025. Corporate results 10-K Q4 2025: A record revenue of $56.8 million, an increase of $3.9 million or 7.3% versus the prior year, which was more than our expectations.
Speaker #3: It is over a year—highest rate growth quarterly in Q4 2025. Historical year Q4 of sequential trend declines and also represents the best end-of-year corporate rate since growth in Q4 2022.
Speaker #3: Revenue delivered a brokered trailing retention of 101.3%, and rate improvement of approximately 80 basis points from the period. Our corporate comparable base of customers, approximately 65,000, was up 11.3% compared to the prior period.
James Malone: Our corporate customer base of approximately 65,000 was up 11.3% over the prior comparable period. Q4 2025 corporate ARPA of approximately $290, a decrease of approximately $13 from the prior comparable period, and approximately $3 sequentially was in line with our expectations. As Johnny mentioned, corporate ARPA, excluding eFax Protect, has increased for 4 consecutive quarters and is materially greater than $300 per month. Moving to full year corporate results. Full year corporate revenue of $222.7 million is up $13.6 million, or 6.5% versus the prior year, and better than the midpoint of our initial 2025 guidance in February 2025.
James Malone: Our corporate customer base of approximately 65,000 was up 11.3% over the prior comparable period. Q4 2025 corporate ARPA of approximately $290, a decrease of approximately $13 from the prior comparable period, and approximately $3 sequentially was in line with our expectations. As Johnny mentioned, corporate ARPA, excluding eFax Protect, has increased for 4 consecutive quarters and is materially greater than $300 per month. Moving to full year corporate results. Full year corporate revenue of $222.7 million is up $13.6 million, or 6.5% versus the prior year, and better than the midpoint of our initial 2025 guidance in February 2025.
Speaker #3: Q4 2025 corporate of $290 . decrease of approximately $13 prior from the period A , and over the Was in line with our expectations as Johnny mentioned , corporate corporate opera FX protect , has increased four consecutive for quarters and $3 sequentially .
Speaker #3: approximately . Moving to corporate results . Full year corporate revenue of 222.7 million is up 6.5% , or versus the prior year , and better than the midpoint of our 13.6 million , initial in corporate February 2025 .
James Malone: Our corporate revenue has grown at a 7% CAGR from approximately $170 million in 2021 to approximately $223 million in 2025. Full year corporate ARPA ended at a solid $300, compared to three hundred and ten dollars in the prior year comparable period, and in line with the last several quarters' range of $290 to $316. Moving to Q4, SoHo results. Revenue of $30.3 million is a decrease of $3.8 million, or 11.1% over the prior year, and slightly ahead of expectations, considering a 13,000 year-over-year decline in paid ads. As Johnny mentioned, while experiencing headwinds in the first half of Q4 due to shifts in the search environment, our operational plans have seen measured success with sign-up metrics improving into Q1 2026.
James Malone: Our corporate revenue has grown at a 7% CAGR from approximately $170 million in 2021 to approximately $223 million in 2025. Full year corporate ARPA ended at a solid $300, compared to three hundred and ten dollars in the prior year comparable period, and in line with the last several quarters' range of $290 to $316. Moving to Q4, SoHo results. Revenue of $30.3 million is a decrease of $3.8 million, or 11.1% over the prior year, and slightly ahead of expectations, considering a 13,000 year-over-year decline in paid ads. As Johnny mentioned, while experiencing headwinds in the first half of Q4 due to shifts in the search environment, our operational plans have seen measured success with sign-up metrics improving into Q1 2026.
Speaker #3: revenue On grown 2025 guidance at a 7% cagar has , excluding approximately 170,000,000 in 2021 to from approximately 223,000,000 in 2025 . Full year corporate opera ended at a solid $300 , to the $310 in year prior comparable period , is line materially last quarters several and in range $290 to 316 .
Speaker #3: Moving to of . Soho month Q4 results Revenue compared of of 3.8 million , decrease 30.3 million is a with the or the over prior full year , 11.1% , and slightly ahead of expectations .
Speaker #3: Considering 13,000 year over year a decline in paid . As experiencing while first half of in the headwinds Q4 search shifts due to have plans seen operational success measured metrics mentioned , Q1 sign up into improving of $15.55 is year year Johnny .
James Malone: ARPA of $15.55 is flat year-over-year. Churn of 3.5% is down sequentially and year-over-year by approximately 21 basis points and 8 basis points, respectively. Full year Soho results. As a reminder, our Soho revenue decline is a deliberate choice that we made several quarters ago as we pivoted this revenue channel to a strategic cash engine. Full year Soho revenue of $127 million is down $14.3 million, or approximately 10% versus prior year, which is in line with our original 2025 guidance range in February 2025 of -11.5% to -7.5%.
James Malone: ARPA of $15.55 is flat year-over-year. Churn of 3.5% is down sequentially and year-over-year by approximately 21 basis points and 8 basis points, respectively. Full year Soho results. As a reminder, our Soho revenue decline is a deliberate choice that we made several quarters ago as we pivoted this revenue channel to a strategic cash engine. Full year Soho revenue of $127 million is down $14.3 million, or approximately 10% versus prior year, which is in line with our original 2025 guidance range in February 2025 of -11.5% to -7.5%.
Speaker #3: flat with over 3.5% is down sequentially year over year by approximately points and Opera eight basis points and , respectively . 21 basis Full year of results 2026 .
Speaker #3: . As a reminder , our Soho revenue deliberate is a choice that we made quarters decline several this revenue to a channel strategic cash engine year revenue Soho as .
Speaker #3: 127 million we or 14.3 million , Full versus prior 10% , , which is in line with our year original 2025 guidance range .
Speaker #3: In a February 2025 of down negative 7.5% . Soho -11.5% to a is $15.58 is up of from Opera customer churn of 3.64% versus prior .
James Malone: SoHo ARPA of $15.58 is up from $15.39, with full year customer churn of 3.64% versus 3.56% in the prior period. Moving to Q4 consolidated results. Revenue of $87.1 million is the third consecutive quarter of consolidated year-over-year growth, an increase of $0.1 million or 0.1% over Q4 2024. Adjusted EBITDA of $45.2 million versus $44.4 million in Q4 2024 delivered a solid 51.9% EBITDA margin and performed ahead of expectations. Adjusted net income of $27.3 million is an increase of $3.1 million, or 12.7% over the prior year, primarily driven by adjusted EBITDA, net interest expense, and depreciation and amortization.
James Malone: SoHo ARPA of $15.58 is up from $15.39, with full year customer churn of 3.64% versus 3.56% in the prior period. Moving to Q4 consolidated results. Revenue of $87.1 million is the third consecutive quarter of consolidated year-over-year growth, an increase of $0.1 million or 0.1% over Q4 2024. Adjusted EBITDA of $45.2 million versus $44.4 million in Q4 2024 delivered a solid 51.9% EBITDA margin and performed ahead of expectations. Adjusted net income of $27.3 million is an increase of $3.1 million, or 12.7% over the prior year, primarily driven by adjusted EBITDA, net interest expense, and depreciation and amortization.
Speaker #3: to Q4 results consolidated Moving of . period Revenue 3.5% in the 87.1 million is the third consecutive quarter of consolidated year over year growth , an increase of 0.1 million , or 0.1% , over Q4 Just at the EBITDA 2024 .
Speaker #3: of four 45.2 million versus 44.4 million in Q4 delivered 2024 , a solid 51.9% EBITDA margin performed ahead of expectations . Adjusted net and income of an 27.3 million is of 3.1 million , or over the prior year driven , primarily by adjusted EBITDA increase .
James Malone: Adjusted EPS of $1.41 is favorable to the prior year by 13.7% or $0.17, driven by the items I mentioned. The Q4 2025 non-GAAP tax rate and share count were approximately 19.5% and approximately 19.4 million shares. Moving to 2025 full year consolidated results. Full year 2025 revenue of $349.7 million is essentially flat year-over-year, near our midpoint of the 2025 full year guidance range. Full year 2025 adjusted EBITDA of $186.9 million delivers a solid 52.4% adjusted EBITDA margin above our original 2025 full year guidance range.
James Malone: Adjusted EPS of $1.41 is favorable to the prior year by 13.7% or $0.17, driven by the items I mentioned. The Q4 2025 non-GAAP tax rate and share count were approximately 19.5% and approximately 19.4 million shares. Moving to 2025 full year consolidated results. Full year 2025 revenue of $349.7 million is essentially flat year-over-year, near our midpoint of the 2025 full year guidance range. Full year 2025 adjusted EBITDA of $186.9 million delivers a solid 52.4% adjusted EBITDA margin above our original 2025 full year guidance range.
Speaker #3: Net interest expense and depreciation and amortization 12.7% , . Adjusted EPs of favorable to $1.41 is the prior year by or 13.7% , $0.17 , driven by the items I mentioned .
Speaker #3: The Q4 2025 non-GAAP tax and share count were approximately 19.5% , and approximately 19.4 million shares . Moving to 2025 full year consolidated results .
Speaker #3: Full year 2025 revenue of essentially flat 349.7 million is year over near year our midpoint of 2025 full year the range guidance . Full year 2025 adjusted EBITDA of delivers 186.9 million a solid 53.4% adjusted EBITDA margin above our original 2025 full year guidance .
James Malone: Adjusted net income of $109.4 million was $3.8 million or 3.6% favorable versus the prior year comparable period, driven primarily by operational performance and efficient capital management. Adjusted EPS grew to $5.62, up 3.1% or 17 cents from the prior year, primarily due to the items I mentioned. This result exceeded our initial high-end guidance range and was close to the high end of the revised guidance range provided on our Q2 call. The 2025 non-cap tax rate and share count was approximately 21% and approximately 19.4 million shares. Moving to our cash, our capital allocation strategy. Free cash flow.
James Malone: Adjusted net income of $109.4 million was $3.8 million or 3.6% favorable versus the prior year comparable period, driven primarily by operational performance and efficient capital management. Adjusted EPS grew to $5.62, up 3.1% or 17 cents from the prior year, primarily due to the items I mentioned. This result exceeded our initial high-end guidance range and was close to the high end of the revised guidance range provided on our Q2 call. The 2025 non-cap tax rate and share count was approximately 21% and approximately 19.4 million shares. Moving to our cash, our capital allocation strategy. Free cash flow.
Speaker #3: range net income Just a of 109.4 million 3.8 million , was or 3.6% favorable versus the year prior comparable period primarily , driven by operational and performance efficient capital management .
Speaker #3: Adjusted EPs grew to $5.62 , up or 3.1% , $0.17 from the year , prior due to items I the mentioned . This results exceeded our initial at high end guidance range and was close to the high end of the revised Revised guidance range provided on our Q2 call .
Speaker #3: The 2025 non tax Capped rate and share count was approximately 21% , and approximately 19.4 million shares . Moving to our our cash , allocation strategy free cash flow .
James Malone: We ended 2025 with $106 million in free cash flow, an increase of $18 million or approximately 20% versus 2024 on strong cash flow from operating initiatives. CapEx ended at $30 million, a decrease of approximately $3 million or 10% versus the prior year. Debt and equity. Q4 2025, we fully retired our 6% bonds due October 2026 at par. Our current debt balance of $562 million consists of 6.5% notes of $348 million, delayed draw term loan $150 million, revolver $64 million. At December 31, 2025, we met our total debt to EBITDA ratio 3 times, with a net debt to EBITDA 2.6 times. Equity. Q4 2025, we repurchased 344,000 shares for $8 million.
James Malone: We ended 2025 with $106 million in free cash flow, an increase of $18 million or approximately 20% versus 2024 on strong cash flow from operating initiatives. CapEx ended at $30 million, a decrease of approximately $3 million or 10% versus the prior year. Debt and equity. Q4 2025, we fully retired our 6% bonds due October 2026 at par. Our current debt balance of $562 million consists of 6.5% notes of $348 million, delayed draw term loan $150 million, revolver $64 million. At December 31, 2025, we met our total debt to EBITDA ratio 3 times, with a net debt to EBITDA 2.6 times. Equity. Q4 2025, we repurchased 344,000 shares for $8 million.
Speaker #3: We ended 2025 with 106 million in free cash flow , an increase of 18 million , approximately 20% , versus 2024 on strong cash flow from operating initiatives .
Speaker #3: CapEx ended at 30 million , a decrease of approximately 3 million , or 10% , versus the prior year . Debt and equity Q4 2025 .
Speaker #3: We fully retired our 6% bonds to October 2026 , at par . Our current debt balance of 562 million consists of six and a half notes of draw term loan , 150 million revolver 64 million .
Speaker #3: At December 31st , 2025 , we met our total debt to EBITDA ratio of three times with a debt to net EBITDA 2.6 times .
Speaker #3: Equity. Q4 2025. We repurchased 344,000 shares for $8 million. For the year 2025, we repurchased 1 million shares for $23 million, and program to date, we have repurchased approximately 2.2 million shares for $57 million.
James Malone: For year 2025, we repurchased 1 million shares for $23 million, and program to date, we have repurchased approximately 2.2 million shares for $57 million. Cash and cash equivalents. We ended fiscal 2025 with $75 million in cash, which is sufficient to fund our operations and capital allocation strategies. Now on to 2026 guidance. Our full year guidance as follows: revenue between $350 million and $364 million, with $357 million at the midpoint. Adjusted EBITDA between $182 million and $193 million, with $187.5 million at the midpoint. Adjusted EPS between $5.55 and $5.95, with $5.75 cents at the midpoint.
James Malone: For year 2025, we repurchased 1 million shares for $23 million, and program to date, we have repurchased approximately 2.2 million shares for $57 million. Cash and cash equivalents. We ended fiscal 2025 with $75 million in cash, which is sufficient to fund our operations and capital allocation strategies. Now on to 2026 guidance. Our full year guidance as follows: revenue between $350 million and $364 million, with $357 million at the midpoint. Adjusted EBITDA between $182 million and $193 million, with $187.5 million at the midpoint. Adjusted EPS between $5.55 and $5.95, with $5.75 cents at the midpoint.
Speaker #3: Cash and cash equivalents . We ended fiscal 2025 with 75 million in cash , which is sufficient to fund our operations and capital allocation strategies .
Speaker #3: Now on to is as guidance Our full 2026 guidance . year . Revenue between 350 million and 364 million , with 357 million at the midpoint follows .
Speaker #3: Adjusted EBITDA between 182 million and 193 million , with 187.5 million at the midpoint . Adjusted EBITDA , adjusted EPs between $5 and $0.55 to $5.95 , with $5 $0.75 at the midpoint .
James Malone: Full year estimated share count and income tax rate are approximately 19.1 million shares and 19.7% to 21.7%, with 20.7% at the midpoint for our tax rate. For our fiscal quarter of 2026, we are also providing guidance as follows: revenue between $85.4 million and $89.4 million, with $87.4 million at the midpoint. Adjusted EBITDA between $43.8 million and $46.8 million, with midpoint of $45.3 million. Adjusted EBITDA EPS between $1.36 and $1.46, with $1.41 at midpoint. Q1 2026 estimated share count and income tax rate are approximately 19 million shares and 19.7% to 21.7%, with 20.7% at the midpoint, respectively. That concludes my formal comments. Now I'd like to turn the call back to Scott.
James Malone: Full year estimated share count and income tax rate are approximately 19.1 million shares and 19.7% to 21.7%, with 20.7% at the midpoint for our tax rate. For our fiscal quarter of 2026, we are also providing guidance as follows: revenue between $85.4 million and $89.4 million, with $87.4 million at the midpoint. Adjusted EBITDA between $43.8 million and $46.8 million, with midpoint of $45.3 million. Adjusted EBITDA EPS between $1.36 and $1.46, with $1.41 at midpoint. Q1 2026 estimated share count and income tax rate are approximately 19 million shares and 19.7% to 21.7%, with 20.7% at the midpoint, respectively. That concludes my formal comments. Now I'd like to turn the call back to Scott.
Speaker #3: Full year estimated share count and income tax rate are approximately 19.1 million shares and 19.7 to 21.7 , with 20.7 at the midpoint .
Speaker #3: For tax rate . For our fiscal quarter of 26 , we are providing as guidance follows also . Revenue between 85.4 million and 89.4 million , with 87.4 million at the midpoint , just at EBITDA 43.8 million between and 46.8 million , with midpoint of 45.3 million , just EBITDA between $1.36 to $1.46 , with $1.41 midpoint .
Speaker #3: Q1 2026 estimated share count and income are tax rate approximately and 19 million shares 19.7 to 21.7 , with 20.7 at the midpoint .
James Malone: Thank you.
James Malone: Thank you.
Scott Turicchi: Thank you, Jim. Before taking questions, I want to draw your attention to an 8-K that we filed last night. As noted, our CFO, Jim Malone, will be retiring this year. He will stay on as CFO through the end of Q1, and then will transition to becoming a special advisor to me through the balance of the year. I want to publicly thank Jim for his more than 4 years at Consensus. He is ending on a high note, and we will miss him. As I noted in my opening remarks, we were leanly staffed in late 2021. Jim came in and built a stellar finance and accounting department, culminating in the earliest investor call in 10-K filing in the company's history.
Scott Turicchi: Thank you, Jim. Before taking questions, I want to draw your attention to an 8-K that we filed last night. As noted, our CFO, Jim Malone, will be retiring this year. He will stay on as CFO through the end of Q1, and then will transition to becoming a special advisor to me through the balance of the year. I want to publicly thank Jim for his more than 4 years at Consensus. He is ending on a high note, and we will miss him. As I noted in my opening remarks, we were leanly staffed in late 2021. Jim came in and built a stellar finance and accounting department, culminating in the earliest investor call in 10-K filing in the company's history.
Speaker #3: That concludes my Respectfully . formal comments like to turn . Now , I'd the back call Scott to . Thank you .
Speaker #1: Thank you taking Jim . Before questions , I want your attention to an 8-K that we to draw last filed night . As noted , our Jim Malone , CFO , retiring this will be year .
Speaker #1: He will stay CFO through the end of on as Q1 , and then to transition we'll becoming a advisor me through special the balance of the to year .
Speaker #1: I publicly want to thank Jim for his more than four years at consensus . note , He is and we will a high ending on him miss .
Speaker #1: noted in my opening were As I remarks , we staffed leanly in came in and late 2021 . Jim built a stellar finance and accounting department , culminating in earliest investor the call in 10-K filing history .
Scott Turicchi: More importantly, he developed his successors internally, such that upon him stepping down as CFO, the board has approved, effective 1 April, for Adam Varon, and our current SVP of finance, to succeed Jim as CFO, and Karel Krulich, our current SVP of accounting, to become our chief accounting officer. Adam has 14 years with the business, and Karel is approaching four years. I look forward to working with both of them and their respective teams. We will now take questions.
Scott Turicchi: More importantly, he developed his successors internally, such that upon him stepping down as CFO, the board has approved, effective 1 April, for Adam Varon, and our current SVP of finance, to succeed Jim as CFO, and Karel Krulich, our current SVP of accounting, to become our chief accounting officer. Adam has 14 years with the business, and Karel is approaching four years. I look forward to working with both of them and their respective teams. We will now take questions.
Speaker #1: company's More in the importantly , developed he his successors internally such that upon him stepping the , CFO , board has approved down as effective April 1st , for our Adam Varon and current of SVP finance , to succeed Jim CFO .
Speaker #1: as Carol krulwich , our current of accounting , SVP become our Chief to Accounting And . Adam officer has 14 years with the Carol was business , and approaching four years .
Operator: Thank you. At this time, we'll be conducting a question and answer session. In the interest of time, we ask that you please limit yourself to one question. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please, while we begin. The first question today is coming from David Larson from BTIG. David, your line is live.
Operator: Thank you. At this time, we'll be conducting a question and answer session. In the interest of time, we ask that you please limit yourself to one question. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please, while we begin. The first question today is coming from David Larson from BTIG. David, your line is live.
Speaker #1: I look forward to both of them and their working with respective will now teams . We questions take .
Speaker #4: At this time, we are conducting a question-and-answer session. In the interest of time, we ask that you please limit yourself to one question. If you would like to ask a question, please press one on your telephone keypad.
Speaker #4: A confirmation indicate tone will is in the your line You queue . question may press If you would star two . like to remove queue yourself for from the participants using speaker and may be equipment necessary to pick up your handset before pressing the star .
Speaker #4: keys moment please . While we begin One . And the first question coming David Larson from today is from Btig line is . David , your .
David Larsen: Hey, congratulations on the good quarter and the continued growth in total revenue and corporate revenue. Can you talk about the demand environment that you're seeing? You know, there's some concern around the Big Beautiful Bill Act, potential declines in exchange enrollment, potential declines in Medicaid enrollment. Is that putting pressure on hospitals' budgets or not? And just sort of an, as an anecdotal point, maybe you could sort of comment on the success of the VA, please. Thank you.
David Larsen: Hey, congratulations on the good quarter and the continued growth in total revenue and corporate revenue. Can you talk about the demand environment that you're seeing? You know, there's some concern around the Big Beautiful Bill Act, potential declines in exchange enrollment, potential declines in Medicaid enrollment. Is that putting pressure on hospitals' budgets or not? And just sort of an, as an anecdotal point, maybe you could sort of comment on the success of the VA, please. Thank you.
Speaker #4: live
Speaker #5: Hey good , congratulations quarter . continued growth in total on the corporate revenue and . Can revenue you talk about the demand environment that you're seeing there's ?
Speaker #5: some concern the big around beautiful act , You know , potential and declines exchange potential Bill declines in Medicaid enrollment . Is that putting pressure on hospitals budgets or not sort of just ?
James Malone: Yeah. Good morning. Thanks, David. Good questions. Really appreciate it. So on the, on the OBDBA and, and the Medicaid cuts, what we're seeing right now is hospitals have, have figured it out. We hear from our customers, you know, they, they usually budget in the, in the last calendar quarter of the year. They went into a little bit of a, yeah, halt mode and just monitoring what was happening, and figuring that out with their budgets. Obviously, we talked about it in the past, focusing more on, on OpEx than, than CapEx, managing their cash. So they're interested in moving into services like ours. It took them a while to work through that process, and we're, we're seeing now, increasing engagement from, from that customer group, which is very encouraging and we're very excited about.
James Malone: Yeah. Good morning. Thanks, David. Good questions. Really appreciate it. So on the, on the OBDBA and, and the Medicaid cuts, what we're seeing right now is hospitals have, have figured it out. We hear from our customers, you know, they, they usually budget in the, in the last calendar quarter of the year. They went into a little bit of a, yeah, halt mode and just monitoring what was happening, and figuring that out with their budgets. Obviously, we talked about it in the past, focusing more on, on OpEx than, than CapEx, managing their cash. So they're interested in moving into services like ours. It took them a while to work through that process, and we're, we're seeing now, increasing engagement from, from that customer group, which is very encouraging and we're very excited about.
Speaker #5: point , And could just comment on maybe you of the success please . VA , the anecdotal Thank you .
Speaker #6: Yeah . Good morning . David . Thanks , Good . Really appreciate . So on on the Obpa and and the Medicaid cuts , what we're seeing right now is hospitals have have figured it out .
Speaker #6: We hear from our customers . You know , they budget in usually the in the last calendar quarter of the year . They went into a little bit of a yeah , halt mode .
Speaker #6: And just monitoring what was happening and figuring that out with their budgets . Obviously , we talked about it past , focusing more on on opex than , than CapEx , managing their cash .
Speaker #6: So they're interested in moving into like services ours . It took them a while to work through that process , and we're we're seeing now increasing engagement from from that customer group , which is very encouraging .
James Malone: On the VA, yeah, we-- I said it on the call, we had a good year. We exceeded the $5 million that we had projected for the year in 2025, and we're expecting, you know, probably north of $9 million or around $9 million of revenue in 2026. So that is a significant growth for just a single account. We're continuing the rollout successfully. We're seeing increased adoption within the sites that we have rolled out, and we still have runway within that customer. So obviously, that runway is built into our 2026 projection, but it's a really encouraging progress with that customer.
James Malone: On the VA, yeah, we-- I said it on the call, we had a good year. We exceeded the $5 million that we had projected for the year in 2025, and we're expecting, you know, probably north of $9 million or around $9 million of revenue in 2026. So that is a significant growth for just a single account. We're continuing the rollout successfully. We're seeing increased adoption within the sites that we have rolled out, and we still have runway within that customer. So obviously, that runway is built into our 2026 projection, but it's a really encouraging progress with that customer.
Speaker #6: And we're very excited about on the on the VA . Yeah , we I said it on the call . We had a good year .
Speaker #6: We exceeded the $5 million that we had projected for the year in 2025 . And we're expecting , you know , probably north of $9 million or around $9 million of revenue in 2026 .
Speaker #6: So that is a significant growth for just the single account . We're continuing the rollout successfully . We're seeing increased adoption within the sites out rolled , and we still have customer .
Speaker #6: So that is a significant growth for just the single account . We're continuing the rollout successfully . We're seeing increased adoption within the sites out rolled , and we still have runway within that So obviously that is built into our 2026 projected projection , but it's a it's a really encouraging progress with with that customer beyond the VA .
Johnny Hecker: ... Beyond the VA, we're engaged with other government agencies, and interestingly, also non-government organizations, that are mandated to use a FedRAMP or sometimes even FedRAMP High solution, now since one is available on the market. So it's very, very encouraging what we're seeing in the public sector and with that eFax or ECFax for government product.
James Malone: Beyond the VA, we're engaged with other government agencies, and interestingly, also non-government organizations, that are mandated to use a FedRAMP or sometimes even FedRAMP High solution, now since one is available on the market. So it's very, very encouraging what we're seeing in the public sector and with that eFax or ECFax for government product.
Speaker #6: We're engaged with other agencies . And government interestingly also non-government organizations that are mandated to use a a , sometimes even a FedRAMP high solution .
Speaker #6: since one is available on the market . So it's very , very encouraging . What we're seeing . And in the public sector .
David Larsen: And then, thank you. That's very helpful. And then it's my understanding that Clarity and Harmony, they use AI that can actually be very effective in the billing and AR process within the revenue cycle for facilities. Just any color there in terms of your use of AI, and, I mean, do hospitals view the purchase of, you know, of your product as a way to accelerate cash collections, or is it more of a CapEx purchase?
David Larsen: And then, thank you. That's very helpful. And then it's my understanding that Clarity and Harmony, they use AI that can actually be very effective in the billing and AR process within the revenue cycle for facilities. Just any color there in terms of your use of AI, and, I mean, do hospitals view the purchase of, you know, of your product as a way to accelerate cash collections, or is it more of a CapEx purchase?
Speaker #6: And with that effects or fax for government product .
Speaker #5: And then thank you . That's very helpful . And then it's my understanding that clarity and harmony use AI they that can very effective in the billing and AR process revenue within the cycle for facilities any , any .
Speaker #5: Just color there in terms of your use of . And I mean , the hospitals view the purchase of , you know , of your product as a way to accelerate cash collections or is it more of a CapEx purchase ?
Johnny Hecker: That's a good question. On the hospital side, we see it being used primarily or more on the referral side. So we're very focused on specific use cases. In that case, it's referrals and orders that for inbound fax traffic, but also scanned referrals and those kind of things. Just getting, sorting through those documents. So the first step is indexing, and then secondly is processing those at a higher pace. So that is helping them cutting down on that administrative burden and on that administrative labor. So that's what I meant by tackling a labor problem, is that they're actually freeing up headcount that they so desperately need on the clinical side, by you know, by using these tools to help on the administrative side. And that's what they're really focused on.
Johnny Hecker: That's a good question. On the hospital side, we see it being used primarily or more on the referral side. So we're very focused on specific use cases. In that case, it's referrals and orders that for inbound fax traffic, but also scanned referrals and those kind of things. Just getting, sorting through those documents. So the first step is indexing, and then secondly is processing those at a higher pace. So that is helping them cutting down on that administrative burden and on that administrative labor. So that's what I meant by tackling a labor problem, is that they're actually freeing up headcount that they so desperately need on the clinical side, by you know, by using these tools to help on the administrative side. And that's what they're really focused on.
Speaker #6: So on the that's a good question . On the on the hospital side , we see it being used primarily or more on on referral side .
Speaker #6: the So we're very focused on specific use cases . And that cases , referrals and orders that for for inbound fax traffic , but scan referrals and those kind of also things , just getting sorting those through documents .
Speaker #6: So the first step is indexing . secondly is And then processing those at our at higher a pace . So that is is helping them cutting down on that administrative burden .
Speaker #6: And on that administrative labor . So what I meant that's that's by tackling a labor problem is that they're actually freeing up so need headcount that they .
Speaker #6: clinical side On the , by , you know , by using tools to to these help on the administrative side . And they're really focused on , that's what rev see on the side , we it cycle , for example , for claims those kind Medicaid management , things of where we are the prior in authorization space to meet those CMS requirements of turning prior around authorizations within the 72 hours , ones that do the come in by fax are completely unstructured , right ?
Johnny Hecker: On the rev cycle side, we see it, for example, you know, Medicaid claims management, those kind of things, where we have more in the prior authorization space, to meet those CMS requirements of turning around prior authorizations within the 72 hours. The ones that do come in by fax are completely unstructured, right? So you need to pull out data points and accelerate that processing, and AI helps to, you know, extract those important data points.
Johnny Hecker: On the rev cycle side, we see it, for example, you know, Medicaid claims management, those kind of things, where we have more in the prior authorization space, to meet those CMS requirements of turning around prior authorizations within the 72 hours. The ones that do come in by fax are completely unstructured, right? So you need to pull out data points and accelerate that processing, and AI helps to, you know, extract those important data points.
Speaker #6: So you need to points and pull out accelerate data that processing . And AI helps to , you know , extract those important data points .
David Larsen: Just one last quick one before I hop back. Go ahead.
David Larsen: Just one last quick one before I hop back. Go ahead.
Johnny Hecker: Yeah, go ahead. No, I was just gonna say, you addressed the Harmony product suite, right? So with Clarity extracting the data, we still need to translate it into a data format and deliver it on a protocol that the customer requires. So it needs to integrate with their EHR system or with their revenue cycle management system, whatever they need. So they need a FHIR message or a HL7, you know, format. So that's where the Harmony, where the platform, you know, thought comes in, where we transfer that unstructured data into a structured data piece, but then deliver it in the exact format that the customer requires.
Johnny Hecker: Yeah, go ahead. No, I was just gonna say, you addressed the Harmony product suite, right? So with Clarity extracting the data, we still need to translate it into a data format and deliver it on a protocol that the customer requires. So it needs to integrate with their EHR system or with their revenue cycle management system, whatever they need. So they need a FHIR message or a HL7, you know, format. So that's where the Harmony, where the platform, you know, thought comes in, where we transfer that unstructured data into a structured data piece, but then deliver it in the exact format that the customer requires.
Speaker #5: Just one last quick one before I hop back. Go ahead. Yeah, go ahead.
Speaker #6: No , I was just going to say you address the the harmony product suite . Right . So with clarity , extracting the data , need to we still translate it into a data deliver it on And format .
Speaker #6: So it requires that the customer needs to integrate with their EHR system or with their cycle management system, whatever they need.
Speaker #6: So they need a fire message or a HL7 , you know , format . So that's where the harmony where the platform , you know , thought comes in where we transfer that structured data and that unstructured data into a structured data piece .
David Larsen: Great. Thank you very much. Then three years from now, what percentage of revenue would you expect to be corporate?
David Larsen: Great. Thank you very much. Then three years from now, what percentage of revenue would you expect to be corporate?
Speaker #6: But then deliver it in the exact format that the customer requires.
Speaker #5: very Great . Thank you much . And then three years from now . What percentage of revenue would you expect to be corporate ?
Scott Turicchi: Ooh. It's a good question. Yeah. You know, and, and part of that goes to not only the growth of corporate over the next 3 years, which, as you can tell from all of our remarks, we're very bullish about those trends, and they're breaking through double-digit growth. But obviously, it introduces the question of where solo will be. But I, I would say if we're at almost 2/3, 1/3 today in favor of corporate, you're probably gonna be around 75, 25 in, within the 3-year time frame. And, that would be premised in part on breaking through the 10% for corporate growth and then pulling in that -10% on solo. But that should be roughly the mix about 3 years out.
Scott Turicchi: Ooh. It's a good question. Yeah. You know, and, and part of that goes to not only the growth of corporate over the next 3 years, which, as you can tell from all of our remarks, we're very bullish about those trends, and they're breaking through double-digit growth. But obviously, it introduces the question of where solo will be. But I, I would say if we're at almost 2/3, 1/3 today in favor of corporate, you're probably gonna be around 75, 25 in, within the 3-year time frame. And, that would be premised in part on breaking through the 10% for corporate growth and then pulling in that -10% on solo. But that should be roughly the mix about 3 years out.
Speaker #7: A good question . Yeah . You know , and part of that to goes not only the growth of corporate over the next three years , which you can tell , as from all of our remarks , we're very bullish about those trends .
Speaker #7: through breaking double digit And if growth , but obviously introduces the question that we're so but I will be would say if at we're almost two thirds , one third today in favor of corporate , you're probably going to be around 75 , 25 in within the three year time frame .
Speaker #7: And that would be premised in part on breaking through the 10% for corporate growth . And then pulling in that -10% on Soho .
David Larsen: Thanks very much. Congrats on a good quarter. I'll hop back in the queue.
David Larsen: Thanks very much. Congrats on a good quarter. I'll hop back in the queue.
Speaker #7: But that should be roughly the mix about three years out .
Scott Turicchi: Appreciate it. Thanks, David.
Scott Turicchi: Appreciate it. Thanks, David.
Operator: Thank you. The next question will be from Gene Mannheimer from Freedom Capital Markets. Gene, your line is live.
Operator: Thank you. The next question will be from Gene Mannheimer from Freedom Capital Markets. Gene, your line is live.
Speaker #5: Okay . Thanks very much . Congrats on a good quarter . I'll hop back in the queue .
Speaker #7: Thanks , David .
Gene Mannheimer: Oh, thanks. Good morning. And, Jim, we'll miss you, and Adam, congrats on the promotion.
Gene Mannheimer: Oh, thanks. Good morning. And, Jim, we'll miss you, and Adam, congrats on the promotion.
Speaker #4: Thank you . The next question will be from Gene Mannheimer from Friedman Capital line is . Gene , your live .
Scott Turicchi: Thank you, Gene.
Scott Turicchi: Thank you, Gene.
Speaker #5: thanks . Well ,
Speaker #8: morning . Good And miss you . And Jim will Adam , congrats on the promotion .
Gene Mannheimer: You're welcome. Good results. I wanted to just dig in a little bit more to Clarity. You indicated you have line of sight in the multimillions in revenue this year. What are the kind of underlying demand dynamics that is driving that interest from the market, and who's the competition that you face there? And then my follow-up question would be just on the guidance range for 2026. It looks a little wide, and I'm just wondering if that's correct, or did you provide a similar range for your initial 2025 view a year ago? Thanks. Well, and what are the variables between the low and the high end of that range?
Gene Mannheimer: You're welcome. Good results. I wanted to just dig in a little bit more to Clarity. You indicated you have line of sight in the multimillions in revenue this year. What are the kind of underlying demand dynamics that is driving that interest from the market, and who's the competition that you face there? And then my follow-up question would be just on the guidance range for 2026. It looks a little wide, and I'm just wondering if that's correct, or did you provide a similar range for your initial 2025 view a year ago? Thanks. Well, and what are the variables between the low and the high end of that range?
Speaker #7: Thank you . G .
Speaker #8: Good You're welcome . results . wanted to I just dig in a little bit more to to clarity . You indicated you you of have line sight in the in revenue multi-millions this year .
Speaker #8: are What what the kind of the underlying demand dynamics that is driving that , that interest from the market ? And who's the competition that you face there ?
Speaker #8: And then my follow up question would be just on the guidance range for 2026 . It looks a little wide and I'm just wondering if that's correct did you provide a similar range for your initial 20 2025 view a year ago ?
Scott Turicchi: Well, why don't John start with the operational question on Clarity, and then I'll jump in and talk about the guidance and the construction of it.
Scott Turicchi: Well, why don't John start with the operational question on Clarity, and then I'll jump in and talk about the guidance and the construction of it.
Speaker #8: Thanks. Well, what are the variables between the low and the high end of that range?
Speaker #7: Well , I don't start with the operational question on clarity . And then I'll jump in and the talk about guidance and the construction of it .
Johnny Hecker: Yeah. So go ahead. So maybe give you a little bit of background on Clarity. As you can imagine, or what you hear about all of the AI projects and other verticals as well, I think the first couple of years was everybody was, like, trying things out and going very broad. And what we have filtered out for ourselves and, you know, where we see most demand is really in that. At first, what I mentioned on the last question. First, really on the indexing, on document classification, and then trying to, you know, get as much value out of the solution as you possibly can. And with the referral management and the order management that I indicated or talked about, you really have two value drivers.
Johnny Hecker: Yeah. So go ahead. So maybe give you a little bit of background on Clarity. As you can imagine, or what you hear about all of the AI projects and other verticals as well, I think the first couple of years was everybody was, like, trying things out and going very broad. And what we have filtered out for ourselves and, you know, where we see most demand is really in that. At first, what I mentioned on the last question. First, really on the indexing, on document classification, and then trying to, you know, get as much value out of the solution as you possibly can. And with the referral management and the order management that I indicated or talked about, you really have two value drivers.
Speaker #6: Yeah .
Speaker #7: So
Speaker #7: go ahead .
Speaker #6: So maybe give you a little bit of so background on on on clarity . As you can imagine , what you hear about all of the AI projects and other verticals well , as is I first couple of the think years everybody was was like trying things out and was very going broad .
Speaker #6: And what we have filtered out for , for ourselves . And you know , where we see most demand is really in that first what I , what I mentioned on , on the last question , first , really the indexing , on on on document classification and then trying to , you know , get as much value out of the solution as you possibly can .
Speaker #6: referral the management and the order management And with that I indicated or talked about , you really have two . You really have two value drivers .
Johnny Hecker: On the one hand, you can manage that administrative burden and some of these imaging centers or radiology centers, or if you think about other verticals that are, or sub verticals that are, you know, high or very reliant on referrals, like infusion management or those kind of things, they have, like, dozens of people sitting there sometimes just keying in data. So that's a cost driver, on the one hand, where they can, you know, that drives demand, where they can reduce the cost. On the other hand, the acceleration of processing those referrals faster really drives top line for them. So you have basically a double benefit, driving top line, getting the referral faster. One of our customers calls it the race to yes, right?
Johnny Hecker: On the one hand, you can manage that administrative burden and some of these imaging centers or radiology centers, or if you think about other verticals that are, or sub verticals that are, you know, high or very reliant on referrals, like infusion management or those kind of things, they have, like, dozens of people sitting there sometimes just keying in data. So that's a cost driver, on the one hand, where they can, you know, that drives demand, where they can reduce the cost. On the other hand, the acceleration of processing those referrals faster really drives top line for them. So you have basically a double benefit, driving top line, getting the referral faster. One of our customers calls it the race to yes, right?
Speaker #6: On the one hand , you can manage that administrative burden some of these . some of And these imaging centers or radiology centers , or if you think about other verticals that are or sub sub verticals that are , you know , high or very reliant on , on referrals like infusion management or those kind of things they have like there dozens of people sitting sometimes keying just in data .
Speaker #6: So that's a that's a cost driver on the one hand , where they can where you know , that drives demand , where they can reduce the cost on on the the other hand , the acceleration of processing those referrals faster really drives top line for them .
Speaker #6: So you have a basically a , you know , a double benefit driving top line , getting the referral faster . One of our customers calls it the the to race .
Johnny Hecker: So whoever responds to a referral first will get that patient. And that's what's, you know, what's driving the demand there, and that's what we're focusing on. So we're trying to move away a little bit from everybody wanting, like, everything, to really focusing, and that's what I meant with my remarks earlier when I said we have a clear go-to-market focus for 2026 for Clarity, really honing in on the referral and on the prior authorization piece, as a first step, and then we will add additional workflows to that. And yeah.
Johnny Hecker: So whoever responds to a referral first will get that patient. And that's what's, you know, what's driving the demand there, and that's what we're focusing on. So we're trying to move away a little bit from everybody wanting, like, everything, to really focusing, and that's what I meant with my remarks earlier when I said we have a clear go-to-market focus for 2026 for Clarity, really honing in on the referral and on the prior authorization piece, as a first step, and then we will add additional workflows to that. And yeah.
Speaker #6: Yes . Right . So whoever responds to a referral first will get that patient . And that's what that's what's , you know , what's driving the demand there .
Speaker #6: And that's what we're focusing on . So we're trying to to move away a little bit from everybody wanting like everything to really focusing .
Speaker #6: And that's what I with meant my remarks earlier when I said , we have a clear go to market for 2026 , focus for clarity , really honing in on the referral and on the prior authorization piece .
Speaker #6: And as a first step , and then we will add additional workflows to that . And yeah .
Isaac Saulson: Got it. That's great color. Thanks, John.
Gene Mannheimer: Got it. That's great color. Thanks, John.
Scott Turicchi: So as to the guidance, let me give everybody a little bit of the history on this and our philosophy. And it has been done consistently, Gene, for a number of years, and certainly with 2025. So as you can imagine, the focus for us from a financial standpoint and operational is on our budget for any upcoming fiscal year, in this case, 2026. That budget then translates into the midpoint of our guidance of both revenue, Adjusted EBITDA, and non-GAAP EPS. And this is important because those are also the numbers that are used as it relates to the various compensation programs for our employees. So some have certain bonus participations based on a combination of revenue and EBITDA. In other cases, it's revenue and adjusted non-GAAP net income. So those are all consistent at the midpoint.
Scott Turicchi: So as to the guidance, let me give everybody a little bit of the history on this and our philosophy. And it has been done consistently, Gene, for a number of years, and certainly with 2025. So as you can imagine, the focus for us from a financial standpoint and operational is on our budget for any upcoming fiscal year, in this case, 2026. That budget then translates into the midpoint of our guidance of both revenue, Adjusted EBITDA, and non-GAAP EPS. And this is important because those are also the numbers that are used as it relates to the various compensation programs for our employees. So some have certain bonus participations based on a combination of revenue and EBITDA. In other cases, it's revenue and adjusted non-GAAP net income. So those are all consistent at the midpoint.
Speaker #8: Got it. That's great color. Thanks, John.
Speaker #9: right All .
Speaker #7: as to So the guidance let me give everybody a little bit of the history on this . And our philosophy . And it has been done consistently .
Speaker #7: Gene , for a number of years . And certainly with 2025 . So as you can imagine , the focus for us from a financial standpoint and is operational on our budget for any upcoming fiscal year , in this case , 2026 .
Speaker #7: That budget then translates into the midpoint of our guidance of both revenue adjusted EBITDA and non-GAAP EPs . And this is important because those are also the numbers that are used as it relates to the various compensation programs for our employees .
Speaker #7: So, some have certain participation bonuses based on a combination of revenue and EBITDA, and in other cases, it's revenue and adjusted non-GAAP net income.
Scott Turicchi: Then what we do is, a while ago, we came up with what I'll call an extrapolation on the top line of about 2%. So it'll give you, based on, you know, the current level of revenue, about a $7 million range on either side. And those are just to account for all the known, known unknowns or unknown unknowns, if you will. You know, things that could change in the economy, not, not catastrophic changes, where you would go from, say, a stable economy to a great financial crisis, but what I call moderating either headwinds or tailwinds in the economy. There's obviously a number of variables that go into generating the top line. There's gonna be some volatility and variability around it.
Scott Turicchi: Then what we do is, a while ago, we came up with what I'll call an extrapolation on the top line of about 2%. So it'll give you, based on, you know, the current level of revenue, about a $7 million range on either side. And those are just to account for all the known, known unknowns or unknown unknowns, if you will. You know, things that could change in the economy, not, not catastrophic changes, where you would go from, say, a stable economy to a great financial crisis, but what I call moderating either headwinds or tailwinds in the economy. There's obviously a number of variables that go into generating the top line. There's gonna be some volatility and variability around it.
Speaker #7: So consistent at those are all midpoint . Then what we do is a while ago , up with what I'll call an we came extrapolation on the top line of about 2% .
Speaker #7: So it gives you , based on , you know , the current level of revenue , about a $7 million range on either side .
Speaker #7: Those are— and just to account for all the known known unknowns or unknown unknowns, if you will. You could know that things change in the economy.
Speaker #7: Not not catastrophic changes where you would go from , say , a stable to economy a great financial crisis . But what I call moderating either headwinds and tailwinds in the economy , there's obviously a number of variables that go into generating the top line .
Scott Turicchi: The thesis is that our midpoint, which is the budget, when you combine that with the extrapolation, should accommodate most of those current unknowns. Now, obviously, if they all accumulate in one direction or another, the range may not be sufficient. So that's where we start. That's the philosophy on the range of revenues. And then from there, we bleed down and we look, obviously, most importantly, at the margin at the midpoint. And then we say, "Well, if you're gonna have a little less revenue, you're probably gonna have a little less margin, even if operationally, you may make some adjustments during the year to mitigate some of your costs, given less revenue." Conversely, on the upside, you'll probably flow through a little bit more than at the midpoint, but you'll also introduce the question of additional reinvestment.
Scott Turicchi: The thesis is that our midpoint, which is the budget, when you combine that with the extrapolation, should accommodate most of those current unknowns. Now, obviously, if they all accumulate in one direction or another, the range may not be sufficient. So that's where we start. That's the philosophy on the range of revenues. And then from there, we bleed down and we look, obviously, most importantly, at the margin at the midpoint. And then we say, "Well, if you're gonna have a little less revenue, you're probably gonna have a little less margin, even if operationally, you may make some adjustments during the year to mitigate some of your costs, given less revenue." Conversely, on the upside, you'll probably flow through a little bit more than at the midpoint, but you'll also introduce the question of additional reinvestment.
Speaker #7: There's going to be some volatility and variability around it . The thesis is that our midpoint , which is the budget , when you combine that with the extrapolation , should most of accommodate current unknowns .
Speaker #7: And obviously, if they go in one direction or accumulate in another, the range may not be sufficient. So that's where we start.
Speaker #7: That's the philosophy on the range of revenues . And then from there we bleed down and we we look obviously most importantly at the margin , at the And then we say , well , midpoint .
Speaker #7: if you're going to have a little less revenue , you're probably going to have a little less margin . Even may operationally , you make some adjustments during the year to mitigate costs given less some of your revenue .
Speaker #7: on the upside , you Conversely , probably flow through a little bit more than at the midpoint , but you'll also introduce the question of additional reinvestment .
Scott Turicchi: And then from there, the things below the line are, I'd say, relatively fixed, independent of revenues. So our depreciation and amortization is really not gonna be a function of where we are in the revenue range. The way we budget our interest expense and interest income is we look at the debt outstanding at the end of the year, so in this case, $562. We have the credit facility portion versus the high yield notes. The high yield notes are fixed at 6.5%. The credit facilities flow, but we generally getting into a mode where we're locking in the SOFR for six months, so that's known. And we assume no debt retirement during the year or equity repurchases.
Scott Turicchi: And then from there, the things below the line are, I'd say, relatively fixed, independent of revenues. So our depreciation and amortization is really not gonna be a function of where we are in the revenue range. The way we budget our interest expense and interest income is we look at the debt outstanding at the end of the year, so in this case, $562. We have the credit facility portion versus the high yield notes. The high yield notes are fixed at 6.5%. The credit facilities flow, but we generally getting into a mode where we're locking in the SOFR for six months, so that's known. And we assume no debt retirement during the year or equity repurchases.
Speaker #7: then from And there , the things below the line are , I'd say , relatively fixed , independent of revenues . So our depreciation and amortization is really not going to be a function of where we are in the revenue range , the way we budget interest expense and our interest at the income is we look debt outstanding at the end year .
Speaker #7: of the So in this case , 562 , we have the credit facility portion versus high the yield notes . The high yield notes are fixed at 6.5% .
Speaker #7: The credit facilities float generally . But we getting into a mode where we're locking in the sofr for six months . So that's known .
Scott Turicchi: And then we just take our estimated free cash flow, and we let it accumulate, and we assume that gets reinvested at money market fund rates. Now, and then, of course, you have a share count that gets you to the bottom line. Now, what will happen, obviously, during the course of the year, something I mentioned in my opening remarks, and it's also responsive to a question that we received via email, is we will take that cash, and there may be better uses for it. Obviously, marginally better returns would come from retiring debt.
Scott Turicchi: And then we just take our estimated free cash flow, and we let it accumulate, and we assume that gets reinvested at money market fund rates. Now, and then, of course, you have a share count that gets you to the bottom line. Now, what will happen, obviously, during the course of the year, something I mentioned in my opening remarks, and it's also responsive to a question that we received via email, is we will take that cash, and there may be better uses for it. Obviously, marginally better returns would come from retiring debt.
Speaker #7: And we assume no debt retirement during the year or equity repurchases . And then we just take our estimated free cash flow and we let it accumulate .
Speaker #7: And we assume that gets reinvested money at market fund rates, now and then. Of course, you have a share count that gets you to the bottom line.
Speaker #7: Now what will happen . Obviously during the course of the year , something I mentioned in my opening remarks . And it's also responsive to a question that we've received via email , is we will take that cash and then maybe better uses for it .
Scott Turicchi: In our judgment, more material returns come from retiring equity, given the free cash flow yield, which today, you know, the spot free cash flow of $106 against our equity is about 25% free cash flow yield, whereas when we retire debt, we're retiring at either under 6% or at most at 6.5%, if we can get those high yield notes at par. So that's what will practically happen as we flow through the year. As I mentioned in the opening remarks, given where the stock price is, we have a strong bias towards shifting our cash flow allocations more in the favor of equity repurchases versus debt retirement.
Scott Turicchi: In our judgment, more material returns come from retiring equity, given the free cash flow yield, which today, you know, the spot free cash flow of $106 against our equity is about 25% free cash flow yield, whereas when we retire debt, we're retiring at either under 6% or at most at 6.5%, if we can get those high yield notes at par. So that's what will practically happen as we flow through the year. As I mentioned in the opening remarks, given where the stock price is, we have a strong bias towards shifting our cash flow allocations more in the favor of equity repurchases versus debt retirement.
Speaker #7: Obviously, marginal returns would come from retiring debt more, and our judgment is that material returns come from equity. Given the free cash flow yield—which today, you know, the free cash flow is about $106 million against our equity—it is about a 25% free cash flow yield.
Speaker #7: Whereas when we retire debt , we're retiring at either under 6% or at most at six and a half . If we can get those high yield notes at par .
Speaker #7: So that's what we'll practically happen as we flow through the year . As I as I mentioned in the opening remarks , given where the stock price is , we have a strong bias towards shifting our cash flow allocations more in the favor of equity repurchases versus debt retirement .
Scott Turicchi: Having said that, if we look out over the next, you know, 2.5 years to the ultimate maturity, the 6.5% notes, it is our goal to bring the total debt of $562 million down, and that's kind of a question mark. My sense is right now, and of course, these are fluid conversations based on market conditions, not only today but in the future, we probably wanna bring that debt down over time to, at, you know, around $500 million. There may be an argument for going lower, and that's something that we'll be exploring over the course of this year, 'cause as I mentioned, given the uncallable nature of the 6.5% notes until October, and then at a premium, it's unlikely we do any refinancing this year. It's possible, but unlikely.
Scott Turicchi: Having said that, if we look out over the next, you know, 2.5 years to the ultimate maturity, the 6.5% notes, it is our goal to bring the total debt of $562 million down, and that's kind of a question mark. My sense is right now, and of course, these are fluid conversations based on market conditions, not only today but in the future, we probably wanna bring that debt down over time to, at, you know, around $500 million. There may be an argument for going lower, and that's something that we'll be exploring over the course of this year, 'cause as I mentioned, given the uncallable nature of the 6.5% notes until October, and then at a premium, it's unlikely we do any refinancing this year. It's possible, but unlikely.
Speaker #7: Having said that , if we look out over the next two and a half years to the ultimate maturity , the 6.5% notes , it is our goal to bring the total debt of 562 down .
Speaker #7: And that's kind of a question mark . My sense is right now . And of course , these are fluid conversations based on market conditions .
Speaker #7: Not only today, but in the future, we probably want to bring that debt down over time to, you know, around $500 million.
Speaker #7: There may be an argument for going lower . And that's something that we'll be exploring over the course of this year , because as I mentioned , given the unpalatable nature of the 6.5% notes until October , and then at a premium , it's unlikely we'd do any refinancing this year .
Scott Turicchi: So these are probably 27 events, but obviously, we're gonna keep our pulse on the market and certainly get that, you know, actually right now. So I know that was more, more than you asked in the question, but that would give everyone a flavor of how we go from the top line to the bottom line.
Scott Turicchi: So these are probably 27 events, but obviously, we're gonna keep our pulse on the market and certainly get that, you know, actually right now. So I know that was more, more than you asked in the question, but that would give everyone a flavor of how we go from the top line to the bottom line.
Speaker #7: It's possible, but unlikely. So these are probably 27 events, but obviously we're going to keep our pulse on the market and start looking at that.
Speaker #7: You know , actually right now . So I know that was more more than you asked in the question . But that'll give everyone a flavor of how we go from the top line to the bottom line
Speaker #7: You know , actually right now . So I know that was more more than you asked in the question . But that'll give everyone a flavor of how we go from the top line to the bottom line .
Isaac Saulson: That's great color. Thanks, Scott.
Gene Mannheimer: That's great color. Thanks, Scott.
Operator: Thank you. The next question will be from Ian Zaffino from Oppenheimer. Ian, your line is live.
Operator: Thank you. The next question will be from Ian Zaffino from Oppenheimer. Ian, your line is live.
Speaker #8: Thanks. Great, that's Scott.
Isaac Saulson: Hey, good morning, this is Isaac Salzen on for Ian. Thanks for taking the questions. Just one on the corporate channel. Could you discuss your expectations for ARPA this year? Do you believe the eFax Protect will continue to have a dilutive impact on ARPA, or any offsets on that for the year? Thanks.
Isaac Sellson: Hey, good morning, this is Isaac Saulson on for Ian. Thanks for taking the questions. Just one on the corporate channel. Could you discuss your expectations for ARPA this year? Do you believe the eFax Protect will continue to have a dilutive impact on ARPA, or any offsets on that for the year? Thanks.
Speaker #4: Thank you . And the next question will be from Ian Zaffino from Oppenheimer . Ian , your line is live .
Speaker #10: Hey , good morning . This is Isaac on for Ian . Thanks for taking the questions . Just one on the corporate channel .
Speaker #10: Could you your expectations discuss for for Arpa this year ? Do you believe you've asked protect will continue to have a dilutive impact on Arpa or any offsets on that for the year .
Johnny Hecker: Yeah. Yeah, good morning. Thanks, Ian. I mentioned it on the call. I think we're looking at ARPA a little bit bifurcated by now, right? Because we have so much traffic and so much volume coming in on the eFax Protect, that it really biases that ARPA downwards-
Johnny Hecker: Yeah. Yeah, good morning. Thanks, Ian. I mentioned it on the call. I think we're looking at ARPA a little bit bifurcated by now, right? Because we have so much traffic and so much volume coming in on the eFax Protect, that it really biases that ARPA downwards-
Speaker #10: Thanks .
Speaker #6: Yeah , yeah . Good morning . Thanks , Ian . The the I mentioned it on the call . I think we're looking at Arpa a little bit by bifurcated by now .
Speaker #6: Right . Because we have so much traffic and so much volume coming in on the , on the FX protect that it really biases that Arpa downwards , modestly , modestly .
Isaac Saulson: Modestly.
Isaac Sellson: Modestly.
Johnny Hecker: Modestly. And then, if we look at the non-eFax Protect cohort, we see that ARPA grow. So I think we're as we, you know, drive more and more eFax Protect customers into our customer base, and we're successful with that program, and we expect it to continue to grow, we will see a little bit downward pressure on that corporate ARPA.
Johnny Hecker: Modestly. And then, if we look at the non-eFax Protect cohort, we see that ARPA grow. So I think we're as we, you know, drive more and more eFax Protect customers into our customer base, and we're successful with that program, and we expect it to continue to grow, we will see a little bit downward pressure on that corporate ARPA.
Speaker #6: And then if we look at the non FX protect cohort , we see that Arpa grow . So I think we as we you know drive more more and FX protect customers into our customer base .
Speaker #6: And we're successful with that program . And we expect it to continue to grow . We will see a little bit of downward pressure on that .
Isaac Saulson: The aggregate corporate.
Isaac Sellson: The aggregate corporate.
Johnny Hecker: The aggregate.
Johnny Hecker: The aggregate.
Isaac Saulson: Yeah.
Isaac Sellson: Yeah.
Johnny Hecker: Exactly. Exactly. The question is if that's really still the right metric to measure that business. We're focusing more and more on the revenue retention rate, which I think is the, you know, stronger indicator for how that business develops.
Johnny Hecker: Exactly. Exactly. The question is if that's really still the right metric to measure that business. We're focusing more and more on the revenue retention rate, which I think is the, you know, stronger indicator for how that business develops.
Speaker #6: That Arpa . corporate
Speaker #7: The aggregate .
Speaker #6: Arpa , the Corporate aggregate . Yeah , exactly . Exactly . The question is if that's really still the right metric to measure that , that business , we're focusing more and more on on the revenue retention rate , which I think the is , you know , the stronger indicator for how that business develops .
Isaac Saulson: Okay, understood. And then just a quick follow-up, just on margins. I know you got it to the, the EBITDA margin. If you could provide any color on gross margin expectations? I know you talked a little bit about modest cost increases and forward remarks, but any additional details on that would be great. Thanks.
Isaac Sellson: Okay, understood. And then just a quick follow-up, just on margins. I know you got it to the, the EBITDA margin. If you could provide any color on gross margin expectations? I know you talked a little bit about modest cost increases and forward remarks, but any additional details on that would be great. Thanks.
Speaker #10: Okay , understood . And then just a quick follow up , just on margins . I know you got it to the EBITDA margin .
Speaker #10: If you could provide any color on gross margin expectations . I know you talked a little bit about modest cost increases and prepared remarks , but any additional details on that would be great .
Scott Turicchi: Yeah, I'd say most of our cost increases are in OpEx, not up there in COGS. So, you know, we have, on a non-GAAP basis, pretty stable margins right around 80%, and there's, I think, no reason to believe those will not continue. So we expect it to be in the 80% range, you know, this year and going forward. Remember, most of our cost structure, the largest single piece is people, and most of the people are expensed down below. They're not in COGS, they're in OpEx.
Scott Turicchi: Yeah, I'd say most of our cost increases are in OpEx, not up there in COGS. So, you know, we have, on a non-GAAP basis, pretty stable margins right around 80%, and there's, I think, no reason to believe those will not continue. So we expect it to be in the 80% range, you know, this year and going forward. Remember, most of our cost structure, the largest single piece is people, and most of the people are expensed down below. They're not in COGS, they're in OpEx.
Speaker #10: Thanks .
Speaker #7: Yeah , I'd say most of our cost increases are in opex , not up there in Cogs . So , you know , on a we have non-GAAP basis , pretty stable margins , right around 80% .
Speaker #7: And there's , I think , no reason to believe those will not continue . So we expect it to be in the 80% range .
Speaker #7: You know , this year and going forward , remember , most of our cost structure , single is the largest people . piece And most of expensed the people below are down .
Scott Turicchi: And so that's where we have, you know, the increased salaries that I mentioned, not only for the core employee base in terms of raises year over year, but also as we add incremental people, they're coming in at the OpEx because they're in Johnny's group, which is, you know, all flavors of go-to-market and our, Jeff Sullivan, our CTO, in his product and engineering group.
Scott Turicchi: And so that's where we have, you know, the increased salaries that I mentioned, not only for the core employee base in terms of raises year over year, but also as we add incremental people, they're coming in at the OpEx because they're in Johnny's group, which is, you know, all flavors of go-to-market and our, Jeff Sullivan, our CTO, in his product and engineering group.
Speaker #7: They're not in Cogs . There in OpEx . And so that's what we have . You know , the increased salaries that I mentioned , not only for the core employee in terms base of raises year over year , but also as we add incremental people , they're coming in at the OpEx because they're in Johnny's group , which is , you know , all flavors of go to market .
Isaac Saulson: Okay, great. Thanks very much, guys.
Isaac Sellson: Okay, great. Thanks very much, guys.
Speaker #7: our And Jeff Sullivan , our CTO , in his product and engineering group .
Scott Turicchi: No problem.
Scott Turicchi: No problem.
Operator: Thank you. There were no other questions at this time. I will now like to hand the call back to Scott Turicchi for closing remarks.
Operator: Thank you. There were no other questions at this time. I will now like to hand the call back to Scott Turicchi for closing remarks.
Speaker #10: Great. Thanks, okay, very much, guys.
Speaker #7: No problem .
Scott Turicchi: Great. Thank you, Paul. Thanks, everyone, for getting up early, depending on where you are in the country, to listen to our Q4 earnings call. We will return to the normal time slot, when we report Q1 in May. This was unusual. As we announced, we are at the BTIG conference, so to accommodate their schedule, we did the release last night and did the call early this morning. This is unusual for us, but we appreciate you attending and asking questions this morning. Of course, we're available not only at the conference over the next couple of days, but we'll be available for Q&A. You can reach out to us, and then there'll probably be one or two conferences over the next several months that we'll attend, and we'll put our press releases alerting you to those.
Scott Turicchi: Great. Thank you, Paul. Thanks, everyone, for getting up early, depending on where you are in the country, to listen to our Q4 earnings call. We will return to the normal time slot, when we report Q1 in May. This was unusual. As we announced, we are at the BTIG conference, so to accommodate their schedule, we did the release last night and did the call early this morning. This is unusual for us, but we appreciate you attending and asking questions this morning. Of course, we're available not only at the conference over the next couple of days, but we'll be available for Q&A. You can reach out to us, and then there'll probably be one or two conferences over the next several months that we'll attend, and we'll put our press releases alerting you to those.
Speaker #4: Thank you . There were no other questions at this time . I will now like to hand the call back to Scott R. Turicchi for closing remarks .
Speaker #7: Great . Thank you Paul . Thanks everyone for getting up early . Depending on where you are in the country to listen to our Q4 earnings call , we will the return to normal slot when we time report Q1 in May .
Speaker #7: This was unusual as we announced , we are at the Btig conference . So to accommodate their schedule , we did the release ended the morning call early last night , this us , unusual for .
Speaker #7: we but This is appreciate you and attending asking questions this course , we're morning . Of available not only at the conference over the next couple of days , but we'll be available for Q&A .
Speaker #7: to reach out and us probably be then there will You can 1 or 2 conferences over the several months next that we'll attend , and we'll put out press releases alerting you to those our next regularly scheduled call will be sometime in May to discuss Q1 you results .
Scott Turicchi: Our next regularly scheduled call will be sometime in May to discuss Q1 results. Thank you.
Scott Turicchi: Our next regularly scheduled call will be sometime in May to discuss Q1 results. Thank you.
Operator: Thank you. This does conclude today's conference. You may disconnect at this time. Thank you for your participation, and have a wonderful day.
Operator: Thank you. This does conclude today's conference. You may disconnect at this time. Thank you for your participation, and have a wonderful day.
Speaker #7: Thank .
Speaker #4: you . This does conclude today's Thank conference . You may this disconnect at time you for your . Thank participation and have a wonderful day .
