Financial Data and Key Metrics Changes - Revenue for Q1 2026 increased by 1% to $52.7 million from $52.2 million in Q1 2025, reflecting expectations [7] - Recurring revenue grew by 8% to $169.6 million compared to $156.4 million in Q1 2025, making up 80% of total revenue [8] - Adjusted EBITDA declined by $1 million to $13.6 million for Q1 2026, with a margin of 25.8% compared to 27.9% in Q1 2025 [9][10] - Adjusted diluted earnings per share from continuing operations was $0.26 for Q1 2026 [9] Business Line Data and Key Metrics Changes - SaaS revenue led growth with over 24%, marking four consecutive quarters of over 20% growth [4] - Transaction-based revenue grew by 12%, while payments revenue increased by 8% [8] - Professional services and maintenance revenues declined, with maintenance revenues down by 8% [8] Market Data and Key Metrics Changes - The company operates in the transportation market and has expanded its geographic reach through recent acquisitions [12] - The i3 Verticals Transportation Platform is now live in 30 states and 4 Canadian provinces [17] Company Strategy and Development Direction - The company is focused on recurring revenue sources and has made a strategic acquisition to enhance its position in the transportation market [4][5] - There is an emphasis on leveraging AI to improve product offerings and customer engagement [18] - The long-term expectation for organic revenue growth remains high single-digit, with recurring revenues expected to grow at a double-digit rate for FY 2026 [11] Management's Comments on Operating Environment and Future Outlook - Management noted that while professional services revenue is expected to decline, they anticipate a rebound in fiscal 2027 and beyond [11] - The company remains well-capitalized and is focused on disciplined capital deployment, including potential stock repurchases [5][10] - Management expressed optimism about the growth prospects of the recent acquisition and its integration into existing operations [12][27] Other Important Information - The company has a strong balance sheet with $37 million in cash and no debt [10] - Guidance for FY 2026 includes revenues of $223 million to $224 million and adjusted EBITDA of $61 million to $66.5 million [10] Q&A Session Summary Question: Update on FY 2026 outlook and organic growth - Management confirmed that organic growth has slightly ticked down, primarily due to professional services revenue [20] Question: Recurring revenue growth expectations - Management reiterated expectations for recurring revenue growth of 8%-10% for the year [21] Question: Capital allocation strategy regarding buybacks and M&A - Management indicated that they bought back a significant number of shares and will continue to be opportunistic with buybacks [22][23] Question: Details on the new acquisition's market share and revenue model - Management highlighted the acquisition's strong market presence and potential for growth, noting it is not currently transactional but could evolve [26][27] Question: Drivers of SaaS revenue growth and sustainability - Management expects organic SaaS growth to remain above 20%, driven by various markets including utilities and public administration [33][34] Question: Thoughts on AI adoption and its impact on GovTech - Management acknowledged that while AI adoption is progressing, regulatory frameworks may slow down its proliferation in GovTech [37][38]