Financial Data and Key Metrics Changes - Total revenues reached a record high of $187.7 million, up 11% from $168.8 million a year ago [5][25] - Record services revenues increased by 16% to $173.7 million, representing approximately 93% of total revenues [26] - Record net income rose by 20% to $43.9 million, or $0.50 per diluted common share [30] - Adjusted EBITDA grew by 19% to a record $85.5 million, with an Adjusted EBITDA margin of 45.6% [30][5] - Cash flow from operations was a record $73 million, up 22% from the previous year [6][31] Business Line Data and Key Metrics Changes - Growth in services revenue was primarily driven by Global Trade Intelligence, e-commerce fulfillment, customs filing, and Transportation Management solutions [27] - License revenue decreased to $1.7 million, down from $3.5 million in the same quarter last year [27] - Professional services and other revenue fell to $12.1 million, down from $15.6 million in the previous year [27] Market Data and Key Metrics Changes - The uncertain trade and tariff environment has led to increased demand for solutions related to foreign trade zones and e-commerce customs clearance [8][9] - The company has seen strong demand for real-time shipment visibility solutions, particularly in the context of heightened consumer expectations [10] Company Strategy and Development Direction - The company is focused on leveraging artificial intelligence to enhance service delivery and operational efficiency [11][12] - The strategic acquisition of Finale Inventory is expected to contribute positively to the e-commerce pillar [22] - The company plans to maintain a normal course issuer bid to react to public market conditions and potential acquisition opportunities [41][42] Management's Comments on Operating Environment and Future Outlook - Management highlighted ongoing geopolitical trade tensions and their impact on customer operations, emphasizing the need for reliable information and solutions [36][37] - The company remains optimistic about its ability to achieve long-term financial plans despite uncertainties in public markets [41] Other Important Information - A planned CFO transition is set for March 2026, with Allan Brett stepping down after over 30 years in the role [23][24] - The company is well-capitalized with $279 million in cash and a $350 million undrawn line of credit [39] Q&A Session Summary Question: Organic growth rate and transaction volumes - Management noted that much of the volume growth came from competitors, with the company gaining market share due to attractive solutions [44][45] Question: Monetization of AI capabilities - The company is exploring various monetization strategies, including charging for enhanced services that leverage AI to improve shipment tracking and problem resolution [48][50] Question: Impact of U.S. trucking regulations - Management believes new trucking regulations will not significantly impact the business, as the company provides solutions to help customers comply with regulations efficiently [71] Question: Capital allocation between share repurchase and acquisitions - The company sees numerous acquisition opportunities and believes integrating businesses into its network will enhance value, prioritizing acquisitions over share repurchases [74][76]

Financial Data and Key Metrics Changes - The company reported record quarterly revenues of $179.8 million, an increase of 10% year-over-year and 7% quarter-over-quarter [7][32] - Adjusted EBITDA reached a record high of $80.2 million, up 14% from the previous year, with an adjusted EBITDA margin of 44.6% [36][38] - Net income increased to $38 million or $0.43 per diluted share, compared to $34.7 million or $0.40 per diluted share in the same quarter last year [36][38] - Cash flow from operations was $63.3 million, with a cash conversion rate of 79%, which would have been 86% without personnel departure costs [9][37] Business Line Data and Key Metrics Changes - Services revenue accounted for 93% of total revenue, amounting to $166.8 million, up 14% from the previous year [33] - Revenue from Global Trade Intelligence, Customs and Regulatory Solutions, and Transportation Management showed strong growth, contributing to overall revenue increases [32][34] - Organic services revenue growth was approximately 4%, consistent with the previous quarter [34] Market Data and Key Metrics Changes - The company noted strong demand for Global Trade Intelligence solutions due to increasing tariff complexities [12] - The transition away from the de minimis program in the U.S. has created a growth area in customs filing solutions [15][19] - Ocean imports to the U.S. reached record levels in July, driven by tariff implementation deadlines [20][46] Company Strategy and Development Direction - The company is focused on diversifying its offerings in domestic and international logistics, particularly in Global Trade Intelligence and Transportation Management [48][49] - Recent acquisitions, including PackageRoute and Finale Inventory, are aimed at enhancing service offerings and operational efficiency [10][27] - The company is committed to maintaining adjusted EBITDA growth of 10% to 15% while navigating uncertain market conditions [31][39] Management's Comments on Operating Environment and Future Outlook - Management highlighted the challenges posed by geopolitical tensions, tariff changes, and economic uncertainty affecting customer behavior [41][42] - The company is well-capitalized with over $240 million in cash and a $350 million undrawn credit line, positioning it to pursue growth opportunities [51] - Management expressed optimism about the ability to adapt to changing market conditions and support customers in navigating complexities [50][54] Other Important Information - The company expects to incur additional capital expenditures of $3 million to $4 million in the second half of the year [39] - The tax rate for the first half of the year was approximately 24%, with expectations to remain in the range of 24% to 28% for the second half [40] Q&A Session Summary Question: What is the outlook for the transactional side of the business? - Management noted that the removal of the de minimis program turned into an opportunity, leading to increased volumes and certainty in the market [56][57] Question: How is the company positioned to leverage AI and data across its network? - Management believes the company is in a strong position to utilize AI and IoT to enhance operational efficiency and decision-making [59][62] Question: Can you provide insights on organic services growth and its drivers? - Strong performance was noted in Global Trade Intelligence and regulatory compliance, while some transactional services remained flat [66][67] Question: What is the status of the restructuring efforts? - The restructuring plan is largely complete, with expected savings of approximately $2 million in the quarter [68][69] Question: How is the fraud prevention business performing? - The fraud prevention segment is growing but remains a small part of the overall business, accounting for less than 1% of total revenue [78] Question: What was the biggest surprise of the quarter? - The recovery in network volumes was a pleasant surprise, indicating improved customer confidence [82][84]