Financial Data and Key Metrics Changes - In Q1 2025, revenue was $77.3 million, representing a decrease of 4% year over year [22] - Reported gross profit declined by 5% year over year, with consumer payment segment gross profit also down by 5%, while business payment segment gross profit increased by 77% year over year [22] - Adjusted EBITDA for Q1 was $33.2 million, maintaining an adjusted EBITDA margin of approximately 43% [23] - Reported free cash flow was negative $8 million, impacted by client losses and working capital changes, but excluding these impacts, free cash flow conversion would have been similar to 38% in Q1 2024 [24] Business Line Data and Key Metrics Changes - Consumer payments showed core growth with contributions from existing clients and new client wins, despite client losses impacting reported growth [8][12] - Business payments reported a gross profit increase of approximately 7% year over year, with a normalized growth of about 12% when excluding political media contributions from the previous year [13][22] - Instant funding product in value-added services saw transaction volumes rise approximately 19% year over year [11] Market Data and Key Metrics Changes - Non-discretionary consumer spending remained resilient year to date, with no major impacts observed from macroeconomic factors [9][52] - The company signed two new software partnerships in consumer payments, increasing total software partners to 182 [10] Company Strategy and Development Direction - The company concluded its strategic review process, focusing on organic growth investments rather than M&A, believing this will yield the best results for shareholders [16][17] - Key operational priorities include enhancing the direct sales model, capitalizing on monetization opportunities, and building indirect partnership channels [17] - The company aims for sequential quarterly normalized gross profit growth, projecting high single-digit to low double-digit growth by Q4 2025 [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to invest organically and produce results that generate shareholder value, with expectations for growth acceleration in the second half of 2025 [18][19] - The macroeconomic environment has changed, but the company remains focused on profitable growth and cash flow generation [16][19] Other Important Information - The Board of Directors increased the share repurchase program authorization to $75 million, maintaining a strong balance sheet with ample liquidity [19][25] - Tim Murphy, the CFO, will be stepping down, with Thomas Sullivan appointed as interim CFO [20][19] Q&A Session Summary Question: Can you provide additional color on the consumer spending environment? - Management noted resiliency in non-discretionary consumer spending, with no major impacts from overall payment processing related to macroeconomic factors [29] Question: Given the increased buyback authorization, do you plan to continue leaning into this rather than M&A? - Management confirmed that they will opportunistically repurchase shares when the share price is disconnected from intrinsic value, while focusing on organic growth [30][31] Question: How far did you go down the strategic review process? - The company assessed various strategic alternatives but concluded that additional investment in organic growth would yield the best results for shareholders [34] Question: Can you help us think about the EBITDA growth trajectory over 2025? - Management indicated that adjusted EBITDA growth would follow a similar path as gross profit growth, with no incremental spend beyond what has been forecasted [38] Question: What are you seeing in terms of repayment volume health in the auto vertical? - Management reported strength in nondiscretionary spending in the auto sector, with no specific issues observed [77]

Financial Data and Key Metrics Changes - In Q1 2025, revenue was $77.3 million, representing a decrease of 4% year over year [19] - Reported gross profit declined by 5% year over year, with consumer payment segment gross profit also down by 5%, while business payment segment gross profit increased by 77% year over year [19] - Adjusted EBITDA for Q1 was $33.2 million, reflecting approximately 43% adjusted EBITDA margins [21] - Reported free cash flow was negative $8 million, impacted by client losses and working capital changes [22] - As of March 31, the company had approximately $165 million in cash and access to $250 million in undrawn revolver capacity, totaling $415 million in liquidity [23] Business Line Data and Key Metrics Changes - Consumer payments showed core growth with contributions from existing clients and new client wins, despite client losses impacting reported growth [6][10] - Business payments reported a gross profit increase of approximately 7% year over year, with a normalized growth of about 12% when excluding political media contributions from the previous year [11][19] - The company signed two new software partnerships in consumer payments, increasing total software partners to 182 [8] Market Data and Key Metrics Changes - The company noted resiliency in non-discretionary consumer spending year to date, despite economic unpredictability [7] - The sales pipeline for enterprise clients remains healthy, with ongoing efforts to enhance payment capabilities [7][8] Company Strategy and Development Direction - The company concluded its strategic review process, focusing on organic growth investments as the best way to create shareholder value [13][14] - Key operational priorities include enhancing the direct sales model, capitalizing on monetization opportunities, and building indirect partnership channels [15] - The company aims for sequential quarterly normalized gross profit growth, targeting high single-digit to low double-digit growth by Q4 2025 [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to invest organically and produce results that generate shareholder value [16] - The company anticipates free cash flow conversion exceeding 50% in Q2 and accelerating above 60% by year-end, excluding one-time impacts [22] - Management acknowledged the ongoing macroeconomic uncertainties but emphasized the strength of their business model and value proposition [7][10] Other Important Information - The company announced an increase in its share repurchase program authorization to $75 million [17] - Tim Murphy, the CFO, will be stepping down, with Thomas Sullivan appointed as interim CFO [18] Q&A Session Summary Question: Can you provide additional color on the consumer spending environment? - Management noted resiliency in non-discretionary consumer spending year to date, with no major impacts from overall payment processing related to macroeconomic factors [26][27] Question: Given the increased buyback authorization, do you plan to focus more on this rather than M&A? - Management confirmed that they will opportunistically repurchase shares when they believe the share price is disconnected from intrinsic value, while still focusing on organic growth [28][30] Question: How far did you go down the strategic review process? - Management indicated that the decision to conclude the review was based on the belief that additional investment in organic growth would yield the best results for shareholders [33][34] Question: Can you discuss the EBITDA growth trajectory for 2025? - Management expects adjusted EBITDA growth to follow a similar path as gross profit growth, with no incremental spend beyond what has been forecasted [36] Question: What are the trends in the auto vertical? - Management reported strength in nondiscretionary spending within the auto vertical, with no significant changes observed in client dynamics [75]

Financial Data and Key Metrics Changes - In Q4 2024, revenue was $78.3 million, representing a 3% year-over-year increase, while full-year revenue increased by 6% [35] - Gross profit grew by 2% year-over-year in Q4, with the consumer payments segment gross profit declining approximately 5% during Q4 and growing 3% for the full year [35] - Adjusted EBITDA for Q4 was $36.5 million, reflecting a 9% growth, with full-year adjusted EBITDA growth at 11% [37] - Free cash flow conversion improved to 64% in Q4 and 75% for the full year, benefiting from strong cash generation and management of operating expenses [38][39] Business Line Data and Key Metrics Changes - The consumer payments segment saw growth from existing clients and new client signings, with 16 new credit unions added in Q4, bringing the total to 329 [10] - The business payments segment gross profit grew 60% year-over-year in Q4, driven by strength in the core AP business and contributions from new clients [16] - Core AP business increased in the low teens in Q4 when excluding client attrition and strategic migrations [22] Market Data and Key Metrics Changes - The consumer payments segment faced challenges due to client losses and macroeconomic factors affecting the auto and ARM sectors [14][49] - The business payments segment benefited from strong ad spending during the 2024 presidential election cycle, positively impacting revenue [19] Company Strategy and Development Direction - The company is undergoing a comprehensive strategic review to assess alternatives for enhancing shareholder value, including potential M&A opportunities [30][31] - Focus on vertical-specific growth opportunities, particularly in accounts receivable management and credit card servicing [12] - Plans to reinvest in organic growth opportunities and strengthen market position through targeted sales and relationship management [32] Management's Comments on Operating Environment and Future Outlook - Management noted that client losses were primarily due to acquisitions and in-house transitions, with no significant changes in market dynamics [46][47] - The company remains confident in its sales pipeline and is focused on improving client experiences to enhance retention and growth [15] - Management refrained from providing a 2025 outlook due to the ongoing strategic review [40][41] Other Important Information - The company has made eight acquisitions since going public in 2019, expanding its consumer payment segment and diversifying its business payment platform [27][28] - The company has approximately $190 million in cash and $250 million in undrawn revolver capacity, totaling $440 million in liquidity [39] Q&A Session Summary Question: What changes are being seen in client attrition drivers? - Management indicated that client losses were due to acquisitions and in-house transitions, with no major trends suggesting increased attrition [46][47] Question: Can you elaborate on consumer softness mentioned in Q4? - Management noted ongoing challenges in the auto sector and ARM recovery, leading to depressed volumes [49] Question: What is the expected growth trend for 2025? - Management refrained from providing specific guidance but indicated that growth rates could normalize to mid to high single digits, excluding client losses [52] Question: What is the focus regarding the mortgage vertical? - The mortgage vertical is viewed as a multi-year organic opportunity, with ongoing progress expected [66] Question: What are the strategic review goals? - The strategic review aims to evaluate all aspects of the company to enhance shareholder value, including go-to-market strategies and potential M&A [58][59] Question: How is the competitive landscape evolving? - Management believes they are well-positioned in the market, with strong sales pipelines and ongoing investments in enterprise sales and product technology [65] Question: What are the trends in personal lending? - Positive momentum is noted in personal lending, with indications of loosening underwriting standards [72] Question: What is the rationale behind the total pay volume migration? - The migration aims to monetize total payment volume more effectively, despite some initial volume loss [75] Question: What are the hurdles to achieving double-digit top-line growth? - Timing of client losses and macro impacts in specific sectors have hindered growth, but strong bookings indicate potential for recovery [124][126]