Financial Data and Key Metrics Changes - The company achieved record revenue of $10.2 million in Q3 2025, marking a 15% increase year-over-year and a $370,000 increase sequentially [9] - Adjusted EBITDA reached a record $2.5 million, up from $1.9 million sequentially, with an adjusted EBITDA margin of 24% [4][9] - Annual recurring revenue (ARR) at the end of Q3 2025 was $38.7 million, a $2.5 million increase year-over-year and a $500,000 increase from Q2 2025 [9] Business Line Data and Key Metrics Changes - The enterprise channel contributed approximately 45% of revenue and 42% of ARR, growing around 26% year-over-year [10] - The partner and marketplace channel contributed around 55% of revenue and 58% of ARR, with a growth rate of approximately 7% year-over-year [10] - Customer count was approximately 123,000, a sequential increase of 3,000 from Q2 2025, but a decrease of 3,000 from Q3 2024 due to a partner renegotiation [11] Market Data and Key Metrics Changes - The company is experiencing significant momentum in the EU market, with several late-stage deals expected to close, contributing to a record quarter in new business ARR [5][16] - The partner and marketplace channel is anticipated to grow further due to the upcoming DOJ Title II rule, which begins to take effect in May 2026 [5] Company Strategy and Development Direction - The company has made significant investments in R&D and go-to-market strategies, particularly in the enterprise channel, which are now yielding positive results [4] - The integration of customers from small acquisitions is on track to be completed, which is expected to improve margins moving forward [5][10] - The company aims to increase adjusted EBITDA and adjusted EPS by 30%-40% annually for the next three years, relying on revenue growth, gross margin expansion, and cost discipline [8][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued growth of ARR and operating leverage, with expectations for significant increases in Q4 2025 [8] - The company is excited about advancements in AI, particularly the integration of the Playwright framework with the Model Context Protocol, which is expected to enhance product efficiency and accuracy [6][7] Other Important Information - The company repurchased approximately 154,000 shares in Q3 2025, totaling around 300,000 shares repurchased in 2025 [7][13] - Free cash flow for Q3 2025 was $2 million, with expectations for continued increases in Q4 [14] Q&A Session Summary Question: Can you speak to the momentum in the EU and partnerships with CREO and Motability? - Management noted that there were deals closed in Q3 and large deals in the late-stage pipeline, expecting a substantial pickup once fines are issued [16] Question: What is the status of the platform migration? - Management confirmed that the migration is progressing well, with most customers expected to be on the new platform this quarter [17] Question: Has the government shutdown impacted compliance adoption rates under Title II of the ADA? - Management indicated that there has been no observed impact from the government shutdown [18] Question: How has the pipeline developed over the past quarter, and what about close rates? - Management stated that it is too early to determine close rates, but the pipeline in the EU is growing with good opportunities [22] Question: What is the average deal size in Europe compared to the US? - Management mentioned that the average deal size in Europe is about 50% higher than in the US, primarily due to more enterprise deals [28] Question: How do you plan to achieve the aspirational goal of 30%-40% growth in Adjusted EBITDA? - Management explained that achieving this goal will require continued revenue growth, gross margin opportunities, and efficient cost management [31]