Financial Data and Key Metrics Changes - Total revenues before reimbursements for the third quarter of 2025 were $72.2 million, a decrease of 7% compared to the prior year [14] - Adjusted earnings per share for the third quarter were $0.37, at the midpoint of the quarterly guidance [4][20] - GAAP net income for the third quarter totaled $2.5 million, or diluted earnings per share of $0.09, down from $8.6 million or $0.31 in the prior year [18] Business Line Data and Key Metrics Changes - Global GS&BT segment revenues were $42.4 million, a decrease of 2% year-over-year, with strong GenAI-related revenue growth offset by weakness in OneStream and the expiration of an iPaaS contract [15] - Oracle Solutions segment revenues were $16.4 million, a decrease of 25% compared to the prior year, attributed to prolonged client decision-making [15] - SAP Solutions segment revenues were $13.4 million, an increase of 4% year-over-year, driven by implementation services from increased software sales activity [15] Market Data and Key Metrics Changes - Approximately 23% of total company revenues before reimbursements consist of recurring multi-year and subscription-based revenues [16] - Days Sales Outstanding (DSO) improved to 71 days from 73 days in the previous quarter [21] Company Strategy and Development Direction - The company is focusing on GenAI-enabled transformation, which is seen as a generational opportunity to change how companies operate and how consulting services are delivered [28][29] - The recent launch of version 4 of the AI Explorer platform is expected to significantly enhance capabilities and attract new clients [5][29] - Strategic alliances are being pursued to expand growth opportunities, with ongoing discussions with potential partners [36][38] Management's Comments on Operating Environment and Future Outlook - The demand for digital transformation remains strong but is impacted by economic concerns and the assessment of GenAI technologies [28] - The company expects continued growth in GenAI revenues, with a forecast for Q4 2025 total revenue before reimbursements in the range of $69.5 million to $71 million [23] - Management anticipates that the majority of strategy and business transformation initiatives will be led by GenAI initiatives by the end of 2026 [52] Other Important Information - The company announced a $40 million Dutch tender offer to acquire approximately 8% of its common stock [10][24] - The board declared a fourth-quarter dividend of $0.12 per share, payable on January 9, 2026 [22] Q&A Session Summary Question: Plans for alliances and potential partners - Management expressed confidence in attracting one or two major alliance partners soon, especially following the release of version 4 [36][38] Question: Software sales and recovery in Q4 - Management noted improved client engagement and pipeline activity, expecting to recover some weakness in Q4 [39][40] Question: Rationale for Dutch auction - The Dutch auction was chosen to be more aggressive in stock buybacks during a volatile quarter, leveraging a strong balance sheet [42][43] Question: Licensing progress for ZBrain and Explorer - Licensing for version 4 is expected to begin late in Q4 or early Q1, with a portion of licenses incorporating ZBrain [48][49] Question: Trends within GS&BT - The largest piece of GS&BT is strategy and business transformation, which is expected to drive a significant portion of operating profits in the future [51][52] Question: Decision-making trends - Clients are making commitments for 2026 while protecting 2025 spending due to economic volatility [55][56] Question: Labor resources in GSBT - Management indicated no concerns about labor resources, citing productivity improvements from new platforms [60][62] Question: Game-changing aspects of version 4 - Version 4 offers enhanced capabilities in simulating and informing client capabilities based on existing technology, significantly improving ideation processes [63][65]

Financial Data and Key Metrics Changes - The company reported revenues before reimbursements of $72.2 million, a decrease of 7% compared to the prior year [14] - Adjusted earnings per share were $0.37, at the midpoint of quarterly guidance, compared to $0.43 in the prior year [20] - GAAP net income for the third quarter totaled $2.5 million, or diluted earnings per share of $0.09, down from $8.6 million, or $0.31 per diluted share in the previous year [18] Business Line Data and Key Metrics Changes - Global GS&BT segment revenues were $42.4 million, a decrease of 2% year-over-year, but excluding declines from OneStream and iPaaS, it was up over 4% [14][15] - Oracle Solutions segment revenues were $16.4 million, a decrease of 25% year-over-year due to prolonged decision-making [15] - SAP Solutions segment revenues increased by 4% to $13.4 million, driven by implementation services [15] Market Data and Key Metrics Changes - Approximately 23% of total revenues before reimbursements consist of recurring multi-year and subscription-based revenues [16] - The company’s Days Sales Outstanding (DSO) improved to 71 days from 73 days in the previous quarter [21] Company Strategy and Development Direction - The company is focusing on GenAI-enabled transformation, which is seen as a generational opportunity to change operational models and consulting service delivery [28][29] - The recent launch of version 4 of the AI Explorer platform is expected to enhance capabilities and attract new clients [5][29] - Strategic alliances are being pursued to expand growth opportunities, with ongoing discussions with potential partners [36][38] Management's Comments on Operating Environment and Future Outlook - Management noted that while demand for digital transformation remains strong, economic concerns are causing organizations to assess competing priorities [28] - The company expects continued growth in GenAI revenues, particularly in Q4 and into 2026, despite some revenue declines in other segments [15][23] - Management anticipates that the integration of GenAI capabilities will lead to improved revenue growth margins and operational efficiencies [32] Other Important Information - The company announced a $40 million Dutch tender offer to repurchase approximately 8% of its common stock [10][22] - The board declared a fourth-quarter dividend of $0.12 per share, payable on January 9, 2026 [22] Q&A Session Summary Question: Can you provide an update on potential alliances? - Management expressed confidence in attracting one or two major alliance partners soon, especially following the release of version 4 [36][38] Question: What is the outlook for software licensing? - Licensing for version 4 is expected to begin late in Q4 or early Q1, with many current opportunities likely converting to AI Explorer licenses [48] Question: How is the GS&BT segment performing? - The GS&BT segment is primarily driven by strategy and business transformation initiatives, which are expected to contribute significantly to operating profits in the future [52] Question: Are there concerns about labor resources in GS&BT? - Management indicated no concerns regarding labor resources, citing productivity improvements from new platforms [60][62] Question: What differentiates version 4 from alternatives? - Version 4 offers enhanced capabilities in simulating and informing client-specific automation footprints, significantly improving ideation and solutioning processes [64][66]

Financial Data and Key Metrics Changes - Total revenues before reimbursements for Q3 2025 were $72.2 million, a decrease of 7% compared to the prior year [15] - Adjusted earnings per share for Q3 2025 were $0.37, at the midpoint of quarterly guidance [4] - GAAP net income for Q3 2025 was $2.5 million, or diluted earnings per share of $0.09, down from $8.6 million or $0.31 in the same quarter last year [19] - Adjusted EBITDA was $15.3 million, or 21.2% of revenues before reimbursements, compared to 22.7% in the prior year [19] Business Line Data and Key Metrics Changes - Global GS&BT segment revenues were $42.4 million, a decrease of 2% year-over-year, but would have increased by 4% excluding the OneStream practice and iPaaS contract [15][16] - Oracle Solutions segment revenues were $16.4 million, down 25% year-over-year due to prolonged decision-making [16] - SAP Solutions segment revenues were $13.4 million, an increase of 4% year-over-year, driven by implementation services [16] Market Data and Key Metrics Changes - Approximately 23% of total revenues before reimbursements consist of recurring multi-year and subscription-based revenues [17] - Days Sales Outstanding (DSO) improved to 71 days from 73 days in the previous quarter [21] Company Strategy and Development Direction - The company is focusing on GenAI-enabled transformation, which is seen as a generational opportunity to change operational and consulting service delivery [27][28] - The recent launch of version 4 of the AI Explorer platform is expected to enhance client engagement and pipeline activity [4][39] - Strategic alliances are being pursued to expand growth opportunities, with ongoing discussions with potential partners [34][35] Management's Comments on Operating Environment and Future Outlook - The demand for digital transformation remains strong but is impacted by economic concerns and decision-making delays [27] - The company expects continued growth in GenAI revenues, particularly in Q4 and into 2026 [16][39] - Management anticipates a decrease in available billing days in Q4 due to holiday schedules, estimating revenues before reimbursements to be in the range of $69.5-$71 million [23] Other Important Information - The company announced a $40 million Dutch tender offer to repurchase approximately 8% of its common stock [11][22] - Cash balances increased to $13.9 million at the end of Q3, up from $10.1 million in the previous quarter [21] Q&A Session Summary Question: Plans for alliances and partnerships - Management expressed confidence in attracting major alliance partners due to the capabilities demonstrated by version 4 of AI Explorer [34][35] Question: Licensing progress for ZBrain and Explorer - Licensing for version 4 is expected to begin late in Q4 or early Q1, with anticipated interest from current clients [41][42] Question: Trends within GS&BT segment - The strategy and business transformation group represents a significant portion of GS&BT revenues, with expectations for GenAI initiatives to drive future profits [43][44] Question: Decision-making trends among clients - Management noted that while clients are cautious about 2025 spending, there is an increasing willingness to invest in digital transformation initiatives [46] Question: Labor resources to meet AI demand - Management indicated that productivity improvements from new platforms will reduce reliance on headcount growth [47]