Financial Data and Key Metrics Changes - Total Q4 revenue was $44.8 million, up 4% year over year, with SaaS revenue growth of 19% being a highlight [20][21] - For fiscal year 2025, total revenue was about $180 million, split evenly between fraud and identity and check verification, with a consolidated revenue growth of 4% [24][25] - Adjusted EBITDA for fiscal 2025 grew by 15% to $54 million, representing a margin of 30%, up from 27% a year ago [27] Business Line Data and Key Metrics Changes - Fraud and identity revenue was $90 million, up 15% year over year, with growth led by SaaS offerings [23] - Check verification revenue for fiscal 2025 was $90 million, compared to $94 million in fiscal 2024, reflecting deal timing year over year [24] - SaaS revenue growth accelerated to 21% in fiscal 2025, with SaaS now accounting for 43% of total revenue [7][30] Market Data and Key Metrics Changes - In North America, several large financial institutions expanded their partnerships, integrating identity verification with fraud checks [9] - In EMEA, banks in the UK and Europe are adopting new authentication products, driving higher verification volumes [9] - The Check Fraud Defender's annual contract value (ACV) grew 50% year over year, with data sets configured in the consortium expanding to over 25% of all U.S. checking accounts [10] Company Strategy and Development Direction - The company aims to unify its identity, authentication, and fraud capabilities into a cohesive platform, focusing on deeper, signal-rich identity journeys [12][15] - Fiscal 2026 is organized around four key pillars: fortifying check verification, unifying fraud and identity capabilities, investing in areas of advantage, and maximizing value through disciplined capital allocation [12][17] - The company is transitioning to a heavier SaaS and services mix, which is expected to compress gross margins slightly but increase absolute gross profit dollars [25][30] Management's Comments on Operating Environment and Future Outlook - Management highlighted the increasing urgency of addressing synthetic identity fraud as a major threat, with AI-enabled fraud attempts rising sharply [5][6] - The company expects fiscal 2026 revenue of $185-$195 million, reflecting stable check verification and accelerating fraud and identity demand [30] - Management expressed confidence in achieving long-term growth objectives, driven by the rising demand for fraud and identity solutions [37][38] Other Important Information - The company has fully remediated all previously reported material weaknesses in its internal controls, marking a significant milestone [32] - Free cash flow for fiscal 2025 was $54 million, equating to 100% conversion of adjusted EBITDA [27][28] - The company ended the year with about $196 million of cash and investments, providing flexibility for future capital needs [29] Q&A Session Summary Question: What are the key drivers behind the growth of the SaaS business? - Management noted that underlying demand driven by the rise in synthetic fraud and partnerships with large financial institutions are key growth drivers [34][35] Question: Can you provide updates on Check Fraud Defender's progress? - Management reported a 50% growth in overall ACV and highlighted that data sets now cover over 25% of U.S. checking accounts, approaching 50% when including pilot institutions [35][36] Question: What is the outlook for organic growth? - Management expressed confidence in achieving double-digit organic growth, supported by the growing need for fraud and identity detection [37] Question: How is the company managing its investment pace? - Management indicated a balanced approach to investments, focusing on R&D and capitalizing on market opportunities while maintaining margin discipline [42][45] Question: What is the status of the mobile deposit business? - Management acknowledged potential secular decline in mobile deposit transaction volumes but noted stability in current volumes [51][54] Question: How will the company handle the upcoming convertible debt? - Management confirmed plans to pay off the convertible debt completely when due in February 2026, utilizing cash and available credit facilities [54]