Financial Data and Key Metrics Changes - Revenue for Q1 2026 was $305 million, representing a 15% year-over-year increase, exceeding the high end of the company's outlook [7][17] - Gross profit reached $129 million, up 19% year-over-year, significantly above the 13% outlook [7][20] - Adjusted EBITDA was $16 million, reflecting a 55% increase year-over-year [7][22] - Payments penetration increased to 41%, up from 36% in the same quarter last year [7][19] Business Line Data and Key Metrics Changes - Software revenue grew 9% year-over-year, with software ARPU increasing by 10% [12][18] - Transaction-based revenue was $204.6 million, up 18% year-over-year [18] - Total gross profit margin improved to 42%, up from 41% last year [20][21] - The company added approximately 1,700 net new customer locations in its growth engines, with total growth engine locations up 5% year-over-year [8][9] Market Data and Key Metrics Changes - Gross payments volume grew 21% year-over-year, with capital revenue increasing by 34% [18] - GTV (Gross Transaction Volume) grew by 4% to $24.6 billion, with growth engine locations up by 5% year-over-year [19][20] - ARPU reached a record $655, up 16% year-over-year, driven by higher software and payments monetization [19] Company Strategy and Development Direction - The company is focusing on two core growth engines: retail in North America and hospitality in Europe, where it has a strong product-market fit and significant growth potential [6][7] - Strategic priorities include growing customer locations, expanding subscription ARPU, and improving adjusted EBITDA and free cash flow [8][9] - The company is investing in outbound sales and vertical marketing to enhance its go-to-market strategy [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and ability to execute despite a fluid macro environment [25] - The company expects total revenue growth of approximately 10% to 12% year-over-year for fiscal 2026, with gross profit growth of approximately 14% [26] - Management highlighted the importance of ongoing investments in sales and product innovation to drive future growth [91] Other Important Information - The company completed a normal course issuer bid, returning $85 million to shareholders in Q1 [23][110] - The cash balance at the end of Q1 was approximately $448 million, with $200 million remaining under the board's authorization for share repurchases [24][110] Q&A Session Summary Question: Subscription revenue growth and pricing initiatives - Management acknowledged that the 9% software growth was solid and attributed it to new customer additions and pricing initiatives from the previous year [28][30] Question: Expectations for location growth - Management expects location growth to converge towards a 10% to 15% CAGR by fiscal 2028, driven by ramping outbound sales efforts [33][35] Question: Drivers of Q1 revenue and gross profit - Management confirmed that Q1 results were driven by solid execution and that there were no one-time factors affecting the results [40][43] Question: Same store sales dynamics - Hospitality same store sales outperformed North American retail, with double-digit growth in European hospitality [47][48] Question: AI impact on retail and hospitality - Management discussed the use of AI to automate tasks and drive insights, enhancing operational efficiency for merchants [53][55] Question: Capital allocation and buyback strategy - Management confirmed that the pace of share buybacks would continue to be opportunistic, with $200 million remaining for future repurchases [111][110]