Financial Data and Key Metrics Changes - For the full year 2025, revenue grew 18% to $751.5 million, with recurring revenue increasing by 20% driven by a 22% year-over-year growth in fulfillment [4][11] - In Q4 2025, revenue was $192.7 million, a 13% increase over Q4 of the previous year, marking the 100th consecutive quarter of revenue growth [11] - Adjusted EBITDA for the year grew 24% to $231.4 million, with Q4 Adjusted EBITDA increasing 22% to $60.5 million [11][12] - The total number of recurring revenue customers was approximately 54,600, with a flat sequential number of 1P customers and a decline of 350 in 3P customers [11] Business Line Data and Key Metrics Changes - Fulfillment revenue grew 22% year-over-year, contributing significantly to the overall revenue growth [4] - The company acquired Carbon6 to enhance its revenue recovery solutions, which represents a $750 million addressable market [5] Market Data and Key Metrics Changes - The company faced challenges in the macroeconomic environment, including tariff-related uncertainties that led to spend scrutiny and delayed purchase decisions [4] - The demand for revenue recovery solutions remained strong, particularly among 1P sellers, despite some headwinds from Amazon policy changes [23][32] Company Strategy and Development Direction - The company is focused on expanding its product portfolio and enhancing customer engagement through AI-enabled products and a reimagined retail go-to-market strategy [18] - The strategic focus is shifting towards increasing customer count and ARPU through retail enablement programs and marketing capabilities [30][80] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macro environment impacting customer spending but expressed confidence in the company's growth trajectory, expecting revenue growth of approximately 7% for 2026 [12][41] - The company anticipates an increase in Adjusted EBITDA margin by 2 percentage points annually, supported by gross margin expansion and effective capital deployment [19][67] Other Important Information - The CFO, Kim Nelson, announced her retirement after nearly 20 years with the company, with Joseph Del Preto set to assume the role [16][17] - The board approved an increase of $200 million in the share repurchase program, totaling up to $300 million [12][48] Q&A Session Summary Question: What were some of the challenges in Q4 that impacted expectations? - Management noted headwinds from existing customers facing invoice scrutiny and uncertainty, which affected revenue [23] Question: How do you view the opportunity with the new Max agentic AI solutions? - The new capabilities are expected to enhance product offerings and provide competitive differentiation, with monetization strategies being developed as customer usage is monitored [25][26] Question: What additional resources or investments are being considered to drive growth? - The company plans to continue investing in retail enablement programs and enhancing marketing capabilities to attract new customers [30] Question: How is the M&A environment currently? - The company remains active in managing an M&A pipeline while balancing share repurchases as an attractive use of capital [48] Question: What is the outlook for 1P customer growth? - The timing of relationship management programs will impact 1P customer additions, with expectations for growth to return in the latter half of 2026 [86]