Financial Data and Key Metrics Changes - Total revenue for the first quarter of fiscal 2026 was $44.2 million, up 19% year-over-year, driven by a 30% growth in fraud and identity revenue and a 21% growth in SaaS revenue [18][19] - Adjusted EBITDA was $13.3 million, up 69% year-over-year, representing a margin of 30% [18][24] - Non-GAAP gross margin was 82%, a decline of approximately 280 basis points year-over-year due to early-stage Check Fraud Defender pilot deployments and SaaS delivery economics [21][24] - Free cash flow for the quarter was $6.6 million, with a 102% conversion of LTM Adjusted EBITDA compared to 83% last year [25] Business Line Data and Key Metrics Changes - Fraud and identity revenue was $25.5 million, up 30% year-over-year, driven by SaaS growth led by MiVIP and Check Fraud Defender [19] - Check Verification revenue for the quarter was $18.8 million, up 6% year-over-year, with annual transaction volumes remaining stable at approximately 1.2 billion [19][20] Market Data and Key Metrics Changes - In North America, performance was driven by large enterprise renewals and targeted expansions, including a new platform entry point at a top five financial institution [10] - In EMEA, progress was made migrating legacy customers onto MiVIP in Spain, supporting expansion across various industries beyond core banking [10] Company Strategy and Development Direction - The company is executing its "Unify and Grow" ethos, focusing on fortifying Check Verification, unifying fraud and identity portfolios, investing in innovation, and maintaining disciplined capital allocation [5][14][15] - The strategy includes combining various verification methods into a single platform experience to address the growing sophistication of fraud [8][9] Management's Comments on Operating Environment and Future Outlook - Management noted that generative AI is accelerating synthetic fraud globally, increasing demand for the company's solutions [4] - The company raised its fiscal 2026 revenue guidance range to $187 million-$197 million, reflecting strong first-quarter execution and improved visibility into customer expansion [28][29] Other Important Information - The company announced a new $50 million share repurchase program following the retirement of its $155 million convertible senior notes [5][27] - The annualized contract value across Check Fraud Defender now stands at approximately $17 million, up 44% year-over-year [11] Q&A Session Summary Question: Can you discuss the competitive environment for the fraud and identity segment? - Management highlighted that the growing demand driven by AI and synthetic fraud is creating opportunities, and the company's broad platform and capabilities position it well in the market [33][35] Question: How are you thinking about the pricing lever for growth over the longer term? - Management indicated that pricing remains stable, with strong relationships supporting growth, particularly in fraud and identity solutions [39][40] Question: Has there been any expansion of the sales force in terms of headcount or marketing budget? - Management confirmed that headcount has expanded, and investments in sales and marketing are ongoing to support growth initiatives [47][49] Question: Can you provide more color on the Check Fraud Defender pilots? - Management reported positive progress with pilots, noting that the accumulated datasets are increasing in value as more partners join the consortium [52][54] Question: Are you seeing more urgency from financial institutions due to AI-driven fraud? - Management acknowledged that institutions experiencing attacks are moving more quickly in their sales cycles, but comprehensive solutions take time to implement [58][60]