Financial Data and Key Metrics Changes - Consensus reported a record revenue of $87.1 million for Q4 2025, marking a slight increase of 0.1% year-over-year, and a full year revenue of $349.7 million, which is essentially flat compared to the previous year [27][28] - Adjusted EBITDA for Q4 2025 was $45.2 million, up from $44.4 million in Q4 2024, resulting in a solid EBITDA margin of 51.9% [27] - Free cash flow reached a record $106 million for the year, an increase of 20% from 2024, with capital expenditures of $30 million, down 10% year-over-year [30] Business Line Data and Key Metrics Changes - Corporate revenue for Q4 2025 was $56.8 million, a 7.3% increase year-over-year, and for the full year, it totaled $222.7 million, reflecting a 6.5% growth [13][24] - The SoHo channel revenue for Q4 2025 was $30.3 million, a decrease of 11.1% year-over-year, with a full year revenue of $127 million, down 10% compared to 2024 [19][26] Market Data and Key Metrics Changes - The corporate channel now represents 64% of total revenue, up from 60% in 2024, and is projected to reach 68% in 2026 [12] - The corporate customer base increased by 11.3% year-over-year to approximately 65,000 customers, with a corporate revenue retention rate of 101.3% [17][24] Company Strategy and Development Direction - The company is focused on transitioning to a recurring revenue model, particularly in the healthcare sector, and is investing in advanced interoperability tools to deepen customer relationships [15][21] - A deliberate strategy is in place to manage the SoHo channel as a strategic cash engine, allowing for funding of corporate growth initiatives [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand environment, noting that hospitals are adjusting their budgets and showing increased engagement with services [40] - The company anticipates continued growth in corporate revenue, projecting approximately 9% growth at the midpoint of guidance for 2026, while expecting a decline in SoHo revenue [9][10] Other Important Information - The CFO, Jim Malone, will retire, and Adam Varon will succeed him as CFO, indicating a smooth transition in leadership [34][35] - The company plans to be more aggressive in its share repurchase program in 2026, given the favorable free cash flow yield compared to debt costs [10][31] Q&A Session Summary Question: Can you talk about the demand environment and the success of the VA? - Management noted that hospitals are adapting to budget constraints and are increasingly interested in operational services, with the VA projected to contribute over $9 million in revenue for 2026, exceeding previous expectations [40][41] Question: What are the underlying demand dynamics for Clarity and competition? - The company highlighted that demand for Clarity is driven by the need to reduce administrative burdens and accelerate processing times, with a focus on specific use cases like referral management [62] Question: Can you discuss expectations for ARPA this year? - Management indicated that while eFax Protect may exert downward pressure on overall ARPA, the non-eFax Protect cohort is expected to see growth [78] Question: Any color on gross margin expectations? - Management expects gross margins to remain stable around 80%, with most cost increases occurring in operating expenses rather than cost of goods sold [85]