Financial Performance - Revenue for the first quarter of fiscal 2026 was $115.9 million, representing a 15% year-over-year increase [10] - Adjusted EBITDA was $20.8 million, an increase of 16.7% year-over-year, with an adjusted EBITDA margin of 18% [11] - Cash and cash equivalents at the end of the quarter were $90.9 million, up from $84.2 million in the prior quarter [11] - Positive operating cash flow of $14.9 million, up $15.6 million year-over-year, and positive free cash flow of $7.5 million, up $13.7 million year-over-year [12] Business Lines Performance - Average healthcare services clients increased to 4,411, up 70 from the prior quarter and 346 from the prior year [10] - Total revenue per average healthcare services client was $26,283, up 6% year-over-year and 4% quarter-over-quarter [10] Market Data - The company is maintaining its revenue outlook for fiscal 2026 at a range of $472 million to $482 million [13] - The adjusted EBITDA outlook for fiscal 2026 has been updated to a range of $85 million to $90 million, an increase of $4.5 million from the previous guidance midpoint [13] Company Strategy and Industry Competition - The company focuses on delivering valuable and scalable products that drive meaningful outcomes for patients and providers, with an emphasis on AI integration across all aspects of the organization [8] - The company aims to grow its network through product-led growth and is well-positioned to allocate capital for long-term shareholder value [8] Management Commentary on Operating Environment and Future Outlook - Management noted that conversations with customers remain strong, with no significant hesitancy in decision-making despite macroeconomic conditions [19][25] - The company continues to see strong demand for its network solutions and is focused on building and delivering products that provide value [25] - Management expressed confidence in the company's ability to adapt to changing market conditions and maintain growth [8][25] Other Important Information - The company has approved a share repurchase plan for up to 2.5 million shares of common stock, aimed at being opportunistic in response to market conditions [81] - The company is optimistic about the potential of its Medifine platform, viewing it as a long-term contributor to revenue [93][95] Q&A Session Summary Question: Insights on network solutions growth and customer conversations - Management highlighted strong growth in network solutions and emphasized the importance of product development and delivery in driving results [19][20] Question: Provider market conversations and outlook - Management indicated that conversations with providers remain focused on delivering value through products, with no significant changes in the competitive landscape [25] Question: ROI visibility for network solutions customers - Management explained that clients can adjust campaigns based on performance, with a strong emphasis on delivering results [31] Question: Sales and marketing performance - Management noted that previous investments in sales and marketing are yielding returns, with expectations for continued growth [36] Question: Capital deployment opportunities - Management stated that while the cash position is improving, the approach to evaluating opportunities remains consistent, focusing on buy, build, or rent strategies [40][42] Question: Impact of proposed legislation on pharma advertising - Management acknowledged ongoing legislative discussions but emphasized the differentiated value of their platform [58] Question: Seasonality in network solutions revenue - Management clarified that fluctuations in revenue are more related to program pacing rather than strict seasonality [62] Question: Labor strategy and expense trajectory - Management explained that recent headcount changes were due to consolidation rather than new hiring strategies [54] Question: Cash conversion rates and payment processing revenue - Management indicated that cash conversion rates are expected to resemble first-quarter performance for the rest of the year [86] Question: Monetization of Medifine offering - Management described Medifine as still in early stages but showing positive revenue contributions [93][95]

Financial Performance and Key Metrics - Revenue for Q1 2026 was $115.9 million, representing a 15% year-over-year increase [9] - Adjusted EBITDA was $20.8 million, an increase of 16.7% year-over-year, with an adjusted EBITDA margin of 18% [10] - Average healthcare services clients increased to 4,411, up 70 from the prior quarter and 346 from the prior year [9] - Total revenue per average healthcare services client was $26,283, up 6% year-over-year and 4% quarter-over-quarter [9] - Cash and cash equivalents at the end of the quarter were $90.9 million, compared to $84.2 million in the prior quarter [10] - Positive operating cash flow of $14.9 million, up $15.6 million year-over-year, and positive free cash flow of $7.5 million, up $13.7 million year-over-year [11] Business Line Performance - The company is focused on delivering scalable products that drive meaningful outcomes for patients and providers, with AI integration across all aspects of the organization [6] - The company is maintaining its revenue outlook for fiscal year 2026 at a range of $472 million to $482 million, with an updated adjusted EBITDA outlook of $85 million to $90 million [12] Market Data and Key Metrics - The company is reiterating its outlook on average healthcare services clients (AHSCs) to reach approximately 4,500 in fiscal year 2026 [12] Company Strategy and Industry Competition - The company emphasizes product-led growth and aims to allocate capital to drive long-term shareholder value [6] - Management highlighted the importance of delivering products that provide value, which is crucial in a competitive market [23] Management Commentary on Operating Environment and Future Outlook - Management noted that conversations with customers remain strong, and the company has been resilient amid macroeconomic volatility [15] - The company is optimistic about its ability to grow its network and expand offerings, driven by a strong balance sheet and growing free cash flow [6][11] Other Important Information - The company has a share repurchase plan for up to 2.5 million shares, aimed at being opportunistic in response to market conditions [80][82] - The Medifine acquisition is still in its early stages, but it is expected to contribute to revenue growth in the future [94][96] Q&A Session Summary Question: Insights on network solutions growth and customer conversations - Management indicated that strong product development and a capable network solutions team are driving growth, with no significant hesitancy reported from customers [15][18] Question: Provider market conversations and outlook - Management noted that conversations with providers remain focused on delivering value through products, with no significant changes in the competitive landscape [22][23] Question: ROI visibility for network solutions customers - Management explained that campaigns can be adjusted based on client needs, and the company has a strong ROI, which drives continued investment from clients [27][29] Question: Sales and marketing performance - Management highlighted that previous investments in sales and marketing are yielding returns, with expectations for consistent expense trends moving forward [34][35] Question: Capital deployment opportunities - Management stated that while the cash position is improving, the evaluation of inorganic opportunities remains consistent, focusing on the best approach to growth [39][41] Question: Impact of flu season on performance - Management clarified that while there are seasonal factors, the introduction of new products like the patient bill pay product is contributing to volume growth [50][51] Question: Labor strategy and expense trajectory - Management explained that recent headcount changes were due to consolidation rather than new hiring, and the expense trajectory is expected to remain stable [53][54] Question: Proposed legislation on drug advertisements - Management indicated that while legislation is always a topic, the focus remains on the value proposition of their platform, which is differentiated [56][58] Question: Network solutions seasonality - Management noted that fluctuations in revenue are more related to program pacing rather than strict seasonality [60][61] Question: Subscription revenue growth - Management confirmed that the growth in revenue per provider client reflects successful product introductions and expansion within existing clients [65][67] Question: AI's impact on competitive landscape - Management observed that AI is enhancing their product offerings and driving value for clients, with a shift towards being a trusted partner in the market [74][76] Question: Share repurchase plan motivation - Management described the share repurchase plan as a means to be opportunistic in response to market volatility, without indicating a change in capital allocation strategy [80][82] Question: Cash conversion rates and payment processing revenue - Management indicated that cash conversion rates are expected to resemble Q1 performance for the rest of the year, with payment processing revenue following historical trends [86][88] Question: Monetization of Medifine offering - Management stated that Medifine is in the early stages of monetization but is expected to grow as the network expands [94][96]

Financial Performance - Revenue for Q1 2025 was $27.6 million, an increase from $26 million in Q1 2024, reflecting ongoing demand for integrated AI-enabled RCM solutions [8][29] - GAAP net income was $1.9 million, a significant turnaround from a net loss of $241,000 in Q1 2024 [8][30] - Adjusted EBITDA rose to $5.6 million, up 52% year over year, representing 20% of revenue [9][31] - Free cash flow for Q1 2025 was $3.6 million, with a significant reduction in dividend obligations from $3.9 million to approximately $1.5 million per quarter following the conversion of Series A preferred stock [11][29] Business Lines and Market Data - Recurring technology-enabled business solution revenue was $17.7 million, up approximately $400,000 year over year, while non-recurring professional services revenue from MSR increased by approximately $1.5 million [29] - Remote Patient Monitoring (RPM) and Chronic Care Management (CCM) revenue grew by approximately 25-30% year over year, although it still represents a small portion of overall revenue [67] Company Strategy and Industry Competition - The company has re-entered the M&A market, completing two strategic acquisitions in early 2025, which are expected to be accretive within 90 days [13][14] - The launch of the AI Center of Excellence aims to position the company at the forefront of intelligent healthcare automation, with plans to scale the team to 500 AI professionals by the end of the year [12][17] - The company is focused on transforming the care journey through intelligent automation across clinical workflows and revenue cycle operations [17][22] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive sustainable value for shareholders and clients, reaffirming guidance for 2025 with expected revenue of approximately $111 million to $114 million [32][34] - The company does not anticipate significant pressure on demand for its services due to external economic factors such as tariffs or inflation [32] Other Important Information - The company has improved its financial position significantly over the past year, returning to profitability and generating strong free cash flow [34] - The AI initiatives are fully self-funded through operating cash flow, reflecting the strength of the underlying business model [17][18] Q&A Session Summary Question: Key factors for revenue growth and expectations for the quarter - Management noted that the revenue growth was driven by a large project in MedSR and emphasized a focus on existing client sales and new opportunities facilitated by specialty-specific EHRs [36][38] Question: Timeline for AI product development - Management indicated that they will provide quarterly updates on AI projects and progress, with ongoing improvements in backend processes and various AI initiatives already in development [42][44] Question: Seasonality of the business - Management acknowledged that Q1 is typically lower due to deductibles but expressed optimism about achieving overall revenue targets for the year [45][46] Question: Capital allocation priorities - The company plans to prioritize reinvestment in the business, particularly in AI, while also pursuing tuck-in acquisitions that align with existing capabilities [50][52] Question: Expense efficiencies and targeted areas - Management highlighted that AI will play a key role in driving efficiencies, particularly in automating revenue cycle functions and improving internal workflows [55][60] Question: Remote patient monitoring and chronic care management opportunities - Management expressed excitement about RPM and CCM growth, noting it as a natural fit for upselling and expanding revenue opportunities, although it remains a small portion of overall revenue [66][68] Question: Sustainability of cost of goods sold and tax rate - Management indicated that the decline in cost of goods sold as a percentage of revenue is sustainable and that the low tax rate is expected to remain consistent due to sufficient NOLs [70][76]

Financial Data and Key Metrics Changes - Total revenue for Q4 fiscal 2024 was $4.7 million, down from $5.4 million in Q4 fiscal 2023 [14] - For the twelve months ended January 31, 2025, revenue totaled $17.9 million, compared to $22.6 million in fiscal 2024 [14] - SaaS revenue for Q4 fiscal 2024 was $3.1 million, representing 66% of total revenue, down from $3.4 million or 64% in Q4 fiscal 2023 [15] - Net loss for Q4 fiscal 2024 was $2.1 million, compared to a net loss of $1.4 million in Q4 fiscal 2023 [16] - Cash and cash equivalents as of January 31, 2025, were $2.2 million, down from $3.2 million a year earlier [17] Business Line Data and Key Metrics Changes - Booked SaaS ACV as of January 31, 2025, was $14 million, increasing to $14.6 million by April 30, 2025 [7][14] - The company experienced $1.4 million in new SaaS ACV bookings, offset by $700,000 in churn due to client acquisitions [7] - SaaS revenue for the twelve months ending January 31, 2025, totaled $11.8 million, down from $14.1 million in the previous fiscal year [15] Market Data and Key Metrics Changes - The company noted a surge in denial activity across the industry, particularly from commercial payers, impacting revenue cycle management [11] - The introduction of denial prevention functionality is expected to significantly enhance the financial impact of the eValuator platform [10] Company Strategy and Development Direction - The company has decided to discontinue selling its quality module as an independent unit to focus resources on more impactful initiatives like denial prevention [9] - The new denial prevention functionality is expected to expand the inpatient financial impact of eValuator by over 15% and potentially double the impact on outpatient cases [10] - The company aims to achieve an EBITDA profitable run rate during the first half of fiscal 2025 [14][13] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of helping healthcare systems succeed in revenue cycle management to ensure they are paid for the care provided [13] - The company is optimistic about future bookings due to increased client engagement and successful user stories shared at conferences [27] Other Important Information - The company amended certain financial covenants related to its senior term loan and revolving line of credit on March 28, 2025 [17] - An additional $1 million was drawn from the revolving line of credit after the fiscal period ended [18] Q&A Session Summary Question: Can you talk about the denials prevention product and its marketability? - Management highlighted the value of the new denial prevention functionality, which helps clients ensure claims are accurate before submission, addressing a significant industry issue [22][23] Question: What changes have enabled quicker implementation timelines? - Management noted improvements in standardizing data and training, resulting in reduced implementation times for eValuator from four to six months to two to three months [25][26] Question: What gives confidence in building momentum for stronger bookings? - Management indicated that increased client engagement and successful case studies shared at events have led to more top-of-funnel activity, suggesting a positive trend in bookings [27][28]

Financial Data and Key Metrics Changes - Total revenue for Q1 was $66.8 million, a 12% increase compared to Q1 2024, and a 25% increase when normalizing for the sale of Amwell Psychiatric Care [23][24] - Subscription software revenue accounted for 48% of total revenue at $32.2 million, up 30% year-over-year [24][29] - Adjusted EBITDA improved to negative $12.2 million from negative $45.6 million in Q1 2024, reflecting ongoing cost reduction efforts [29] Business Line Data and Key Metrics Changes - The company completed approximately 1.3 million visits in Q1, which is about 23% lower than the previous year, but normalized visits were only 21% lower [25] - AMG's visit revenue trended 14.3% lower year-over-year at $26.6 million, but normalized visits were up 6.6% [26] - Average revenue per visit was $71, which is 8% lower compared to last year's Q1, but normalized revenue per visit was 8% higher [26] Market Data and Key Metrics Changes - The company is experiencing a shift towards technology-enabled care, with increasing consumer demand for online healthcare services [15][21] - The military health system is now fully utilizing the platform for virtual visits, positioning the company strongly in the federal market [11][12] Company Strategy and Development Direction - The company aims to achieve positive cash flow from operations by 2026, focusing on increasing the mix of subscription software revenues [6][30] - The recent hire of Dan Zemanski as Chief Product and Technology Officer is expected to enhance the company's technological capabilities and streamline consumer experiences [10][40] - The company is committed to driving efficiencies and optimizing cash flow while expanding its market presence [11][20] Management's Comments on Operating Environment and Future Outlook - Management noted that despite macroeconomic uncertainties, the demand for their platform is increasing as it provides significant ROI for clients [52][63] - The company remains confident in the renewal of its contract with the Defense Health Agency, which is expected to be finalized soon [32][70] - Management expressed optimism about the future, highlighting the potential for growth in technology-enabled care [21][35] Other Important Information - The company ended Q1 with $222 million in cash and marketable securities and zero debt [29] - The guidance for 2025 includes expected revenue in the range of $250 million to $260 million, with subscription revenue anticipated to represent nearly 60% of total revenues [30][31] Q&A Session Summary Question: Can you talk about bookings trends for CONVERGE and the impact of Dan's hire? - Management noted good receptivity to the platform beyond the DHA, with Dan's expertise expected to enhance consumer experience and data infrastructure [37][39] Question: Is the current gross margin rate sustainable for the rest of the year? - Management indicated that gross margins should improve as software revenues increase, with expectations of reaching 75-90% margins [44][45] Question: Have macroeconomic factors impacted sales timelines? - Management acknowledged market uncertainty but emphasized that their platform is seen as a solution to efficiency and revenue growth [51][53] Question: What is the status of the DHA contract and other government opportunities? - Management expects no significant changes in the economics of the DHA contract and highlighted the successful implementation of their platform across the military health system [56][58] Question: What is the company's direct exposure to tariffs? - Management stated that direct exposure to tariffs is minimal, as most hardware is sourced from third parties, and the business primarily focuses on software [62][63] Question: How is churn being managed, and what is the outlook for the selling season? - Management reported lower-than-expected churn and noted increased interest from both health systems and payers in their products [82][84]