Financial Data and Key Metrics Changes - The company reported record first quarter revenues with a 5% increase in revenues, and a 6% increase excluding net income, which was down from the previous year [4][6] - Total processing volume increased by 34%, with ACH processing volume up 36% [4][6] - Adjusted EBITDA rose to $700,000 in the quarter, up from $500,000 in the fourth quarter of 2024 [5] - Cash position improved to $8.7 million at quarter end, generating $700,000 in cash during the quarter [5][6] Business Line Data and Key Metrics Changes - PayFac processing dollars were up 33% in the quarter, leading to a 25% increase in PayFac revenue, which now accounts for approximately 59% of total card revenues [11][12] - ACH revenues increased by 33%, with electronic transaction volumes up 36%, marking the sixth consecutive quarter of growth [17][18] - Output Solutions revenues increased by 12% sequentially, with electronic documents processed up 5% [19][20] Market Data and Key Metrics Changes - The company is experiencing strong growth in its PayFac business, with 17 new ISVs in various stages of implementation [11] - The company is focusing on small retail merchants with a new filtered spend program, which allows targeted spending [13] Company Strategy and Development Direction - The company is pursuing a dual mandate to grow the business while improving profitability through better leveraging of its infrastructure [6][25] - The UCO-one initiative aims to enhance cross-selling opportunities across business lines, with early successes already noted [8][10] - The company is strategically focused on the small to medium business market and plans to add a payroll card offering to its portfolio [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 14% to 16% top-line revenue growth for the year, with expectations for acceleration in the second half [6][26] - The company remains insulated from macroeconomic challenges due to its diversified product portfolio [26] - Management highlighted the potential of new technologies, including a biometrics AI-driven application, to revolutionize payment methods [23][24] Other Important Information - The company is generating strong cash flow and has the flexibility to evaluate strategic acquisitions [25] - Management emphasized the importance of efficiency and productivity efforts to improve gross and EBITDA margins [25] Q&A Session Summary Question: Clarification on organic revenue growth - Management confirmed that there was over $1 million in spoilage revenue in the year-ago period, affecting organic growth rates [30] Question: Insights on UCO-one initiative and sales team composition - The company has 12 quota-bearing salespeople and is moving to a standardized CRM to facilitate cross-selling [33][35] Question: Gross margin decline explanation - Management explained that the decline in gross margin was due to the absence of high-margin spoilage revenue from the previous year [37] Question: Future gross margin expectations - Management aims for gross margins to reach around 25% as revenue scales [42] Question: M&A criteria and opportunities - The company looks for synergies, favorable acquisition multiples, and the ability for acquired companies to operate independently post-acquisition [46][47]