Financial Data and Key Metrics Changes - Revenue for Q3 was $100.7 million, up 13.2% year-over-year, driven by ongoing demand for software solutions [26] - Non-GAAP gross margin for the quarter was 73.1%, expanding by 297 basis points year-over-year [29] - Non-GAAP operating income was $9 million, nearly tripling from $3.4 million in Q3 last year [31] - Adjusted EBITDA for Q3 was $11.9 million, 81.4% higher than the $6.6 million generated in the same quarter last year [32] - Non-GAAP net income for the quarter was about $2 million, resulting in non-GAAP EPS of $0.03 [34] Business Line Data and Key Metrics Changes - Software revenue was $41.9 million, an increase of 39.6% year-over-year [26] - Software services revenue was $46.9 million, up $1.6 million from last year [27] - Total software revenue for the quarter was approximately $88.7 million, a year-over-year increase of 17.9% [27] - Professional services revenue in Q3 was $12 million, a decrease of $1.7 million over last year [27] Market Data and Key Metrics Changes - The U.S. market continues to present significant opportunities, with ongoing investments in partnerships and field activities [13] - Total remaining performance obligations (RPO) at the end of Q3 was $576.6 million, compared to $567.6 million at the same period last year [40] - Short-term RPO at the end of Q3 increased to $358.9 million, providing solid visibility into revenue over the next 12 months [41] Company Strategy and Development Direction - The company is raising its full-year guidance, now expecting revenue of approximately $400 million, representing year-over-year growth of approximately 14% [24] - The focus remains on expanding market reach in the U.S. and enhancing partnerships, such as with LexisNexis [13][64] - The company aims to deliver sustained value for customers, partners, employees, and shareholders [25] Management's Comments on Operating Environment and Future Outlook - Management noted healthy demand for AI-powered investigative and decision intelligence solutions, with strong customer trust and repeat business [9][11] - The company is well-positioned for future growth, with a commitment to innovation and operational efficiency [25][44] - Management expressed confidence in the ability to generate sustained profitable growth, driven by a strong customer base and operational leverage [46] Other Important Information - The company had strong cash flow from operations of $25 million and free cash flow of $23.2 million during Q3 [38] - The cash position increased to $106.6 million with no debt, reflecting disciplined working capital management [38] Q&A Session Summary Question: Breakdown of large deal announcements and their impact on RPO and revenue - Management clarified that the software license part is included in RPO, and the sales cycle for large deals typically takes several quarters [48][50] Question: Conversations in the U.S. Federal market post-government shutdown - Management noted that demand drivers in the U.S. are similar to other regions, and engagement with federal agencies has resumed following the shutdown [59][61] Question: Competitive landscape in the U.S. market - Management identified L3Harris and Octasic as competitors in the U.S. market, noting that challenges are similar to those faced globally [70] Question: Duration of contracts and trends in RPO - Management confirmed strong RPO levels and indicated that CRPO has grown year-over-year, providing confidence in future growth [71][72] Question: Professional services revenue fluctuations - Management explained that professional services revenue is aligned with the target of 13% of total revenue, with fluctuations due to revenue recognition criteria [73][78] Question: Drivers of margin outperformance - Management attributed margin improvements to customer willingness to pay premium prices and efficiencies in cost structure [88][90]

Financial Data and Key Metrics Changes - Revenue for Q3 2026 was $100.7 million, representing a year-over-year increase of 13.2% [15] - Non-GAAP operating income nearly tripled year-over-year to $9 million from $3.4 million [17] - Adjusted EBITDA for Q3 was $11.9 million, an increase of 81.4% compared to $6.6 million in Q3 last year [17] - Non-GAAP net income for the quarter was approximately $2 million, resulting in a non-GAAP EPS of $0.03 [18] - GAAP net loss for Q3 was $3.4 million, compared to a loss of $2.6 million in Q3 last year [18] - Total revenue for the first three quarters of the year was $293.8 million, up 14.7% year-over-year [19] Business Line Data and Key Metrics Changes - Software revenue was $41.9 million, an increase of 39.6% year-over-year [15] - Software services revenue was $46.9 million, up $1.6 million from last year [15] - Total software revenue for the quarter was approximately $88.7 million, a year-over-year increase of 17.9% [15] - Professional services revenue in Q3 was $12 million, a decrease of $1.7 million over last year [15] Market Data and Key Metrics Changes - Recurring revenue reached $47.5 million, representing 47.1% of total revenue [16] - Total remaining performance obligations (RPO) at the end of Q3 was $576.6 million, compared to $567.6 million at the same period last year [21] - Short-term RPO increased to $358.9 million, providing solid visibility into revenue over the next 12 months [22] Company Strategy and Development Direction - The company is raising its full-year guidance, now expecting revenue of approximately $400 million, representing year-over-year growth of approximately 14% [13] - The focus remains on expanding the U.S. market and strengthening partnerships, such as with LexisNexis Risk Solutions [8] - The company aims to deliver sustained value for customers, partners, employees, and shareholders [14] Management's Comments on Operating Environment and Future Outlook - Management noted healthy demand for AI-powered investigative and decision intelligence solutions, with strong momentum in military intelligence and law enforcement sectors [5] - The company is well-positioned for future growth, with a commitment to innovation and operational efficiency [14] - Management expressed confidence in the ability to generate sustained profitable growth, supported by a strong customer base and operational leverage [24] Other Important Information - Non-GAAP gross margin for the quarter was 73.1%, expanding by 297 basis points year-over-year [16] - Cash flow from operations for Q3 was $25 million, with free cash flow of $23.2 million [20] - The company has no debt and a cash position of $106.6 million, reflecting disciplined working capital management [20] Q&A Session Summary Question: Breakdown of large deal announcements impacting RPO and revenue - Management clarified that the software license part is included in RPO, and the conversion to revenue depends on the size and complexity of the deal [26][28] Question: Overall conversations in the U.S. Federal market post-government shutdown - Management indicated that demand drivers are similar to other regions, and discussions with federal customers resumed after the shutdown [37][39] Question: Competitive landscape in the U.S. market - Management noted that while challenges are similar, the competitive landscape includes companies like L3Harris and Octasic [46] Question: Duration of contracts and trends in RPO - Management confirmed strong RPO levels and indicated that CRPO has grown year-over-year, providing confidence in future growth [47] Question: Professional services revenue fluctuations - Management explained that professional services are expected to be around 13% of total revenue, with fluctuations related to revenue recognition criteria [48][51] Question: Drivers of margin outperformance - Management attributed margin improvements to customer willingness to pay premium prices and efficiencies in cost structure [60]

Core Insights - Edge Total Intelligence Inc. (EdgeTI) has secured a significant subscription agreement with a leading U.S. financial services firm that manages over $1.5 trillion in assets under management (AUM) [2][8] - The initial subscription is expected to generate annual recurring revenue (ARR) exceeding $300,000, marking a strategic milestone for the company [3][8] - The deployment of EdgeTI's edgeCore™ platform aims to enhance decision-making processes, compliance workflows, and operational efficiency within the financial services sector [4][5] Financial Impact - The contract is projected to strengthen near-term revenue visibility with an ARR of more than $300,000 [3][8] - The engagement opens pathways for upselling and cross-selling opportunities across a large advisor base and various business units, potentially increasing customer lifetime value and gross margin [5][8] Strategic Significance - This agreement validates the scalability and credibility of edgeCore™ in regulated environments, showcasing its ability to integrate data and automate workflows [4][8] - The contract represents a clear expansion strategy for EdgeTI within the wealth management network, reinforcing its market momentum in both B2B and B2G sectors [8]

Core Insights - Edge Total Intelligence Inc. (EdgeTI) has renewed and expanded its edgeCore™ platform agreement with a U.S. government agency focused on environmental protection and restoration [1] - The edgeCore platform is recognized as a critical technology for environmental cleanup, demonstrating its capability to integrate across various operational silos and support federal and state environmental priorities [1][2] Company Overview - EdgeTI specializes in real-time digital operations and decision intelligence solutions, helping enterprises, service providers, and governments achieve complex operational goals [2] - The edgeCore platform combines multiple software applications and data sources into immersive digital twins, providing decision-makers with clarity and agility in dynamic situations [2] Financial Commitment - The contract awarded to EdgeTI is valued at approximately US$1,065,000, covering a two-year period with an option for an additional year [5] - The renewal of the contract reinforces the value of the digital twin platform to the customer, indicating strong demand in both government and enterprise sectors [5] Operational Benefits - The edgeCore platform aims to reduce costs and risks by providing secure integrations that eliminate redundant data repositories while enhancing cybersecurity [6] - It improves oversight and reporting through contextualized dashboards and digital twins, offering visibility into key performance indicators (KPIs) and project data for environmental stakeholders [6] - The platform is expanding its capabilities to include non-financial areas such as environmental, safety, and health (ESH) KPIs and milestones [6]