Financial Data and Key Metrics Changes - Total first quarter reported revenue was $64 million, down 7% from the prior year, driven by an 8% decline in the enterprise division and a 2% decrease in the education division [28][32] - Adjusted EBITDA was $3.7 million compared to $7.7 million in the previous year, reflecting lower reported revenue and higher SG&A expenses [32] - Cash flows from operating activities were $0.1 million compared to $14.1 million in the previous year, primarily due to timing-related changes in working capital [32] Business Line Data and Key Metrics Changes - The enterprise division generated 74% of the company's overall revenue, with invoiced amounts growing 4% to $45.5 million [33] - North America segment invoiced amounts grew 7% to $34.9 million, and excluding government contracts, it grew 13% [33][34] - Education division revenue was $16.1 million, 2% lower than the prior year, primarily due to decreased material sales [39] Market Data and Key Metrics Changes - International segment revenue was $11.2 million, down slightly from $11.4 million in the prior year, primarily due to challenges in China [38] - Excluding China, international segment revenue increased 4%, and licensee revenue increased 8% compared to the first quarter of fiscal 2025 [38] Company Strategy and Development Direction - The company views fiscal 2026 as a year of execution and return to growth, with expectations for strong growth in invoiced amounts and reported revenue in fiscal 2027 [4][46] - Strategic investments in transforming the enterprise North America go-to-market strategy are gaining traction, with a focus on solution selling and bundling content with services [34][46] - The company aims to be the partner of choice for organizations seeking to achieve breakthrough results, emphasizing the importance of human capabilities alongside AI [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong growth in invoiced amounts, particularly in North America, and expects this momentum to continue [5][26] - The company anticipates that the meaningful growth in invoiced amounts will translate into substantial growth in reported revenue, Adjusted EBITDA, and free cash flow in fiscal 2027 [12][46] - Management acknowledged the impact of macroeconomic conditions and government actions on revenue recognition and deferred revenue [28][32] Other Important Information - The company has a strong liquidity position with $80 million at the end of the first quarter and no drawdowns on its credit facility [41] - The company repurchased approximately 582,000 shares in the open market at a cost of $10.4 million during the first quarter [42] Q&A Session Summary Question: Guidance for the full year and adjusted EBITDA timing - Management reaffirmed guidance for the full year, noting that adjusted EBITDA will be more back-end loaded due to the timing of large education contracts [51][52] Question: Update on North American Enterprise sales force - Management confirmed that invoice growth in Q1 was up 7% in North American Enterprise, with a significant increase in new logo subscription invoiced amounts [57][58] Question: Drivers of growth in new logo sales - Management indicated that growth was driven by a combination of higher attach rates of services and an increase in subscription sales [88][92]

Financial Data and Key Metrics Changes - Total first quarter reported revenue was $64 million, down 7% from the prior year, driven by an 8% decline in the Enterprise Division and a 2% decrease in the Education Division [28][31] - Adjusted EBITDA was $3.7 million compared to $7.7 million in the previous year, reflecting lower reported revenue and higher SG&A expenses [32] - Cash flows from operating activities were $0.1 million compared to $14.1 million in the previous year, primarily due to timing-related changes in working capital [32] Business Line Data and Key Metrics Changes - Enterprise Division invoiced amounts grew 4% to $45.5 million, with North America segment invoiced amounts growing 7% to $34.9 million, and 13% excluding government contracts [33][34] - Education Division revenue was $16.1 million, down 2% from the prior year, primarily due to decreased material sales [38] - Subscription revenue in the Education Division increased 12% to $11.8 million compared to $10.5 million in the prior year [40] Market Data and Key Metrics Changes - International segment revenue was $11.2 million, down slightly from $11.4 million in the prior year, primarily due to challenges in China [37] - Excluding China, revenue from the International segment increased 4%, and licensee revenue increased 8% compared with the first quarter of fiscal 2025 [38] Company Strategy and Development Direction - The company views fiscal 2026 as a year of execution and return to growth, with expectations for strong growth in invoiced amounts and reported revenue in fiscal 2027 [4][46] - Strategic investments in transforming the go-to-market strategy are gaining traction, with a focus on solution selling and bundling content with services [34][19] - The company aims to be the partner of choice for organizations seeking to achieve breakthrough results, emphasizing the importance of human capabilities alongside AI [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong growth in invoiced amounts, particularly in North America, and expects this momentum to continue [5][26] - The company anticipates that the meaningful growth in invoiced amounts will translate into substantial growth in reported revenue, Adjusted EBITDA, and free cash flow in fiscal 2027 [12][46] - Management acknowledged the impact of macroeconomic conditions and government actions on revenue recognition and deferred revenue [28][12] Other Important Information - The company has a strong liquidity position with $80 million available, including $17.5 million in cash and no drawdowns on its credit facility [41] - The company repurchased approximately 582,000 shares in the open market at a cost of $10.4 million during the first quarter [42] Q&A Session Questions and Answers Question: Clarification on guidance and Adjusted EBITDA timing - Management confirmed that the Adjusted EBITDA will be more back-end loaded due to the timing of large Education contracts, which are expected to be recognized in Q3 and Q4 [52][53] Question: Update on North American Enterprise sales force performance - Management confirmed that invoice growth in North American Enterprise was up 7%, with a significant increase in new logo subscription invoiced amounts growing 25% year-over-year [57][91] Question: Drivers of growth in new logo subscription invoiced amounts - Management indicated that the growth was driven by a combination of larger deals and a successful go-to-market transformation, with a focus on strategic clients [98][97]

Financial Data and Key Metrics Changes - Total first quarter reported revenue was $64 million, down 7% from the prior year, driven by an 8% decline in the enterprise division and a 2% decrease in the education division [27] - Adjusted EBITDA was $3.7 million compared to $7.7 million in the previous year, reflecting lower reported revenue and higher SG&A expenses [31] - Cash flows from operating activities were $0.1 million compared to $14.1 million in the previous year, primarily due to timing-related changes in working capital [31] Business Line Data and Key Metrics Changes - The enterprise division generated 74% of the company's overall revenue, with invoiced amounts growing 4% to $45.5 million [32] - Invoiced amounts in North America grew 7% to $34.9 million, and excluding government contracts, it grew 13% [32][33] - The education division's revenue was $16.1 million, 2% lower than the prior year, primarily due to decreased material sales [37] Market Data and Key Metrics Changes - International segment revenue was $11.2 million, down slightly from $11.4 million in the prior year, primarily due to business conditions in China [36] - Excluding China, international segment revenue increased 4%, and licensee revenue increased 8% compared to the first quarter of fiscal 2025 [36] Company Strategy and Development Direction - The company views fiscal 2026 as a year of execution and return to growth, with expectations for significant growth in invoiced amounts and reported revenue in fiscal 2027 [4][42] - Strategic investments in transforming the enterprise North America go-to-market strategy are gaining traction, with a focus on solution selling and bundling content with services [33][21] - The company aims to be the partner of choice for organizations seeking to achieve breakthroughs in performance, emphasizing the importance of human capabilities alongside AI [16][18] Management's Comments on Operating Environment and Future Outlook - Management anticipates strong growth in invoiced amounts in fiscal 2026, particularly in Enterprise North America, with a strong pipeline and significant year-over-year increase in advanced bookings [6][12] - The company expects education to achieve strong growth in both invoiced and reported sales in fiscal 2026, despite the seasonality of revenue recognition [11][39] - Management remains optimistic about the company's ability to deliver sustainable growth, supported by strong client retention and expanding demand for leadership development services [44][45] Other Important Information - The company incurred $3.4 million in restructuring expenses during the first quarter, reflecting efforts to streamline operations [30] - The balance of billed deferred subscription revenue in North America increased 8% to $49.1 million, indicating a solid foundation for future growth [36] Q&A Session Questions and Answers Question: Guidance reaffirmation and adjusted EBITDA timing - Management reaffirmed guidance for the full year, noting that adjusted EBITDA will be more back-end loaded due to the timing of large education contracts [46][47] Question: North American Enterprise sales force performance - The invoiced growth in North American Enterprise was up 7% in Q1, with a significant increase in new logo subscription invoiced amounts growing 25% [49][50] Question: Lifecycle of new logos and attachment rates - The company has seen success in transitioning new logos to client partners, maintaining retention rates and expanding revenue through dedicated focus on customer success [65]