Financial Data and Key Metrics Changes - In Q4 2025, revenue was $636 million, a decline of 110 basis points year-over-year, but increased 40 basis points when excluding FormSwift, which was a 150 basis point headwind [22] - Total ARR was $2.526 billion, down 190 basis points year-over-year, and down 30 basis points when excluding FormSwift [23] - Average revenue per paying user (ARPU) increased to $139.68 from $139.07 in the prior quarter, primarily due to FX tailwinds and a shift from annual to monthly plans [23][24] - Gross margin was 80.8%, down 230 basis points year-over-year, while operating margin was 38.2%, exceeding guidance of 37% [24][25] Business Line Data and Key Metrics Changes - The core FSS business showed steady growth in the individual segment, indicating that focused innovation can drive better retention and growth [6][12] - The introduction of Dash capabilities within Teams plans has led to solid early engagement, with over half of active users returning multiple days per week [8] Market Data and Key Metrics Changes - The company exited Q4 with 18.08 million paying users, a sequential increase of approximately 10,000 users, driven by momentum in the simple plan [23] - The company expects modestly negative net new paying users in Q1 2026, largely due to seasonality and FormSwift headwinds, with flat growth anticipated for the remainder of the year [32] Company Strategy and Development Direction - The company aims to restore revenue growth by focusing on core business improvements and scaling Dash, with a goal of returning teams to positive net license growth [6][12] - The strategy includes simplifying pricing and packaging, enhancing onboarding experiences, and improving retention [7][10] - M&A is viewed as a strategic tool to expand the product portfolio and enhance customer relevance, with a focus on disciplined acquisitions [19][82] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the direction of the company, emphasizing the importance of execution and scaling successful initiatives [12][22] - The company acknowledges the competitive nature of the FSS market but believes that recent leadership changes and product innovations will drive sustained improvements in retention and growth [17][68] Other Important Information - The company generated over $1 billion of unlevered free cash flow in 2025 and reduced diluted share count by more than 50 million shares [4][5] - The company has a strong balance sheet with cash and short-term investments of $1.04 billion and plans to continue share repurchases [29] Q&A Session Questions and Answers Question: Can you provide quantitative metrics around Dash? - Management indicated that they are focused on product quality and engagement before monetization, with specific metrics to be shared as adoption scales [38][39] Question: What metrics can you provide around engagement with Dash? - Management noted strong early results from Dash, with good user engagement and plans to accelerate rollout to more users [50][51] Question: What drove improvements in retention? - Improvements were attributed to new leadership and enhancements across the customer journey, including better communication of value and product experience [68]

Financial Data and Key Metrics Changes - Total revenue for 2025 grew nearly 5% to $2.52 billion, with subscription revenue increasing just over 5.5% to $2.43 billion [5][27] - Record free cash flow of more than $500 million was achieved, up 32% versus 2024, translating to over $5.80 of free cash flow per share [5][28] - GAAP operating margin reached nearly 5% in 2025, with expectations to double in 2026, targeting approximately 20% GAAP operating margin in the next three to four years [7][30] - Non-GAAP operating margin improved to 22.8% in Q4, up more than 140 basis points year-over-year [26] Business Line Data and Key Metrics Changes - Subscription revenue in Q4 was $622 million, up 5.5% year-over-year, while total revenue was $644 million, up 4.8% [25] - RCAI-utilizing customers, those using at least one AI product, now account for nearly 10% of overall ARR, more than doubling year-over-year [25][11] - AIR, the AI receptionist, saw customer count reach 8,300, up 44% sequentially, indicating strong demand [15] - ACE, the AI conversation expert, exceeded 4,800 customers, up 144% year-over-year, showcasing the growing adoption of AI products [16] Market Data and Key Metrics Changes - Demand remains strong across all customer segments, with small business and global service provider business growing in double digits [45] - The combined revenue from small business and global service providers is over $1.1 billion, performing well above the Rule of 40 [45] - Pricing pressure is more pronounced in the enterprise segment compared to SMB, but small business growth has accelerated year-over-year [45] Company Strategy and Development Direction - The company is focused on transforming into a leading agentic voice AI platform, with significant investments in AI-led products [9][12] - A quarterly dividend of $0.075 per share was announced, marking a strategic enhancement to the capital return strategy [7][24] - The company aims to reduce stock-based compensation (SBC) to 3%-4% of annual revenue over the next three to four years [6][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's future, highlighting strong financial performance and a robust market position [23][24] - The ongoing investment in AI is expected to drive long-term growth and enhance customer value [11][12] - Management anticipates that the headwinds from COVID-lapping contracts will subside, entering 2027 with a clean slate [45] Other Important Information - The company reduced debt by more than $275 million, ending the year at 1.7x net leverage [28][29] - New equity grants declined by 36% to approximately $160 million, contributing to a reduction in SBC as a percentage of revenue [28] Q&A Session Summary Question: What are the capital allocation priorities for 2026 and beyond? - The company plans to invest over $250 million in R&D, primarily for AI-led products, while also focusing on reducing leverage and returning capital through buybacks and dividends [38][40] Question: How is demand characterized across different customer segments? - Demand is strong across all segments, with small business growth accelerating and enterprise facing some pricing pressure [45] Question: What levers are being used to improve profitability? - Profitability improvements are driven by strong gross margins, disciplined spending, and operational leverage [51][52] Question: What is the average contract value for AI customers? - AI-related customers are showing significantly better retention and higher average revenue per user (ARPU) compared to non-AI customers [55][58] Question: How is the partner program adjusted for AI priorities? - The partner program is focused on key verticals like healthcare and financial services, with strong uptake of AI products among partners [70][71]

Financial Data and Key Metrics Changes - Total revenue for 2025 grew nearly 5% to $2.52 billion, with subscription revenue increasing just over 5.5% to $2.43 billion [5][27] - Record free cash flow of more than $500 million was achieved, up 32% versus 2024, translating to over $5.80 of free cash flow per share [5][28] - GAAP operating margin reached nearly 5% in 2025, with expectations to double in 2026 and target approximately 20% in the next 3-4 years [6][31] - Non-GAAP operating margin improved to 22.5%, with a GAAP EPS of $0.48 and non-GAAP EPS growing 18% to $4.36 [28][26] Business Line Data and Key Metrics Changes - Subscription revenue in Q4 was $622 million, up 5.5% year-over-year, while total revenue was $644 million, up 4.8% [25] - RCAI-utilizing customers, those using at least one AI product, now account for nearly 10% of overall ARR, more than doubling year-over-year [25][11] - AIR, the AI receptionist, saw customer count reach 8,300, up 44% sequentially, indicating strong demand [14] Market Data and Key Metrics Changes - Demand remains strong across all customer segments, with small business and global service provider business growing in double digits [45] - The combined revenue from small business and global service providers exceeds $1.1 billion, performing well above the rule of 40 [45] - Pricing pressure is more pronounced in the enterprise segment compared to SMB, but small business growth has accelerated year-over-year [45] Company Strategy and Development Direction - The company is transitioning towards becoming a leading agentic voice AI platform, with significant investments in AI-led products [10][12] - A quarterly dividend of $0.075 per share was announced, marking a strategic enhancement to the capital return strategy [6][24] - The focus remains on investing in durable growth, reducing SBC, and achieving an investment-grade credit rating by reducing gross debt to $1 billion by the end of 2026 [31][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's future, highlighting strong free cash flow generation and a robust financial profile [23][40] - The outlook for 2026 includes subscription revenue growth of 4.5%-5.5% and total revenue growth of 4%-5% [33] - The company anticipates continued strength in its AI product portfolio, which is expected to drive higher retention and revenue growth [11][21] Other Important Information - The company has reduced new equity grants by 36% to approximately $160 million, contributing to a significant reduction in SBC as a percentage of revenue [28] - The introduction of the Customer Engagement Bundle (CEB) has seen strong demand, crossing 1,000 customers shortly after launch [19] Q&A Session Summary Question: Capital allocation priorities for 2026 and beyond - Management highlighted the focus on investing in business growth, reducing leverage, and returning capital through buybacks and dividends [39][40] Question: Demand environment across different customer segments - Demand remains strong across all segments, with small business growth accelerating and enterprise facing some pricing pressure [45] Question: Profitability levers and stock compensation reduction - Management discussed operating margin expansion driven by strong growth margins, disciplined spending, and reduced SBC [50][52] Question: Average contract value and ARPU for AI customers - AI-related customers are showing significantly better retention and higher ARPU, contributing to overall revenue growth [56][57] Question: Uptake of AI across different go-to-market channels - Uptake of AI products has been strong across segments, particularly with smaller customers benefiting from easy setup [62]

Core Insights - The company achieved record enterprise momentum in 2025, closing more million-dollar-plus deals than in 2023 and 2024 combined, driven by the shift toward cloud-based AI customer experience stacks [1] - Strong enterprise voice growth of 21% was attributed to rapid value realization, with the 2025 customer cohort contributing 15% of total enterprise revenue [1] - The Bandwidth Communications Cloud and Maestro software are positioned as essential orchestration layers for managing shifting AI models across complex legacy environments [1] Revenue and Growth - Software services are now attached to all million-dollar-plus deals, creating high-margin recurring revenue streams that scale with core usage [1] - The company maintained industry-leading customer durability with 100% name retention in the enterprise voice segment and a median tenure of twelve years among the top 20 accounts [1] Competitive Advantage - A structural margin advantage is emphasized, derived from owning and operating a global infrastructure-based platform rather than reselling third-party carrier access [1]

Group 1 - The core argument of the article is that concerns regarding the impact of artificial intelligence (AI) on software and services stocks may be exaggerated, as companies are actively adapting to the changes brought by AI [1] - Companies like DoorDash are countering the narrative that AI will lead to their demise, indicating a resilience in the software and services sector [1] - The article suggests that the anticipated negative effects of AI on these stocks are not imminent, and the sector is not facing an existential threat [1]

Core Insights - Earnings reports from DoorDash, Figma, and Moody's indicate that concerns regarding AI disruption may be exaggerated [1] Group 1: Company Performance - DoorDash reported strong earnings, suggesting resilience in its business model despite AI-related fears [1] - Figma's performance highlights continued demand for design tools, indicating that AI is not significantly undermining its market position [1] - Moody's results reflect stability in the financial services sector, further supporting the notion that AI disruption is not as severe as anticipated [1] Group 2: Industry Implications - The overall performance of these companies suggests that the impact of AI on various industries may be more nuanced than previously thought [1] - The resilience shown by these firms could indicate a potential for growth and adaptation in the face of technological advancements [1] - The findings challenge the narrative that AI will lead to widespread disruption across all sectors, suggesting a more balanced view of technology's role in business [1]

N-Able (NYSE:NABL) Q4 2025 Earnings call February 19, 2026 08:30 AM ET Company ParticipantsAdam Holets - Equity Research AssociateGriffin Gyr - Senior Manager of Investor RelationsJohn Pagliuca - President and CEOMatt Hedberg - Head of Global TIMT Research and Director of Equity ResearchTim O'Brien - EVP and CFOConference Call ParticipantsJoe Vruwink - Research AnalystMike Cikos - Senior AnalystOperatorLadies and gentlemen, thank you for joining us, and welcome to the N-able fourth quarter 2025 earnings cal ...

Core Insights - Medical Care Technologies Inc. has provided a strategic update on its first AI-based mobile application, Snapshot Recipes, which has been approved by the Apple iOS App Store and is currently in testing mode [1] Group 1 - The application, Snapshot Recipes, is designed to leverage artificial intelligence [1] - The approval from the Apple iOS App Store marks a significant milestone for the company [1] - The application is currently live in testing mode, indicating progress towards full deployment [1]

Core Viewpoint - The Meridian Small Cap Growth Fund's fourth-quarter 2025 performance reflects a mixed market environment, with small caps achieving a 12.8% annual return despite a 0.90% net return for the fund in Q4 compared to the Russell 2000 Growth Index's 1.22% return [1]. Group 1: Market Overview - U.S. equity markets experienced optimism due to potential monetary easing and caution regarding economic growth and valuations [1]. - Early gains in the quarter were driven by strong AI-related earnings and a rate cut by the US Federal Reserve in October [1]. - Market sentiment cooled later in the quarter, but the overall annual results remained robust [1]. Group 2: Fund Performance - The Meridian Small Cap Growth Fund achieved a 0.90% net return in Q4 2025 [1]. - Small caps delivered a 2.2% gain in Q4 2025, contributing to an annual return of 12.8% [1]. Group 3: Company Focus - Consensus Cloud Solutions, Inc. - Consensus Cloud Solutions, Inc. (NASDAQ:CCSI) is highlighted as a leading information delivery services provider with a one-month return of 29.94% and a 10.70% increase over the last 52 weeks [2]. - The stock closed at $28.34 per share on February 18, 2026, with a market capitalization of $538.624 million [2]. - The company has a high percentage of recurring revenues, low churn in the enterprise segment, and high margins, but underperformed in Q4 due to a mixed earnings report [3]. - Currently trading at less than four times earnings with a free cash flow yield of approximately 22%, the company is viewed as attractively valued [3]. - Consensus Cloud Solutions, Inc. recorded revenue of $87.1 million in Q4 2025, a slight increase of 0.1% from Q4 2024 [5].

Core Viewpoint - Wolters Kluwer has repurchased 217,021 ordinary shares for €13.5 million at an average price of €62.29 during the period from February 12 to February 18, 2026, as part of its ongoing share buyback program [1][2]. Share Buyback Program - The share buyback program, announced on November 5, 2025, aims to repurchase shares worth up to €200 million from November 6, 2025, to February 23, 2026 [2]. - As of the current date, a total of 1,187,180 shares have been repurchased, with a total expenditure of €91.8 million and an average share price of €77.33 [2]. Treasury Shares and Capital Reduction - Shares repurchased will be held as treasury shares and are intended for capital reduction through share cancellation [3]. Company Overview - Wolters Kluwer reported annual revenues of €5.9 billion for 2024, serving customers in over 180 countries and employing approximately 21,900 people globally [4]. - The company is headquartered in Alphen aan den Rijn, the Netherlands, and is listed on Euronext Amsterdam [5].