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 fulfillment growth of 22% year-over-year [5][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] Business Line Data and Key Metrics Changes - The total number of recurring revenue customers was approximately 54,600, with the number of 1P customers flat sequentially and a decline of 350 in 3P customers [11] - Average Revenue Per User (ARPU) for the year increased to approximately $14,350 [11] Market Data and Key Metrics Changes - The company faced challenges in the macroeconomic environment, including tariff-related uncertainties that contributed to spend scrutiny and delayed purchase decisions [5][11] - The revenue recovery segment represents a $750 million addressable market across 1P US sellers, indicating significant cross-selling opportunities within the network [6] Company Strategy and Development Direction - The company acquired Carbon6 to enhance its revenue recovery solutions and expand its network [6] - The introduction of AI-enabled products, such as the Max agentic capabilities, is expected to enhance competitive positioning and customer value [10][19] - The company aims to achieve at least high single-digit revenue growth without acquisitions beyond 2026 and plans to increase Adjusted EBITDA margin by 2 percentage points annually [19][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing headwinds affecting customer spending and invoice scrutiny, particularly in the revenue recovery segment [24][25] - The outlook for 2026 includes expected revenue growth of approximately 7% over 2025, with a focus on ARPU growth and customer retention [14][15][41] 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 [17][18] - The board approved an increase of $200 million in the share repurchase program, demonstrating a commitment to returning capital to shareholders [12][13] Q&A Session Summary Question: Challenges in Q4 and their impact on expectations - Management noted that headwinds from existing customers and invoice scrutiny contributed to lower-than-expected revenue, despite strong demand in revenue recovery [24][25] Question: Monetization of new AI solutions - The new Max capabilities are expected to enhance competitive positioning and customer retention, with monetization strategies to be developed as customer usage is monitored [26][27] Question: Future growth strategies and investments - The company plans to increase customer count through retail enablement programs and enhance marketing capabilities to attract new customers [32][33] Question: Changes in revenue recovery focus - Management indicated a continued investment in the 1P area of revenue recovery, aligning with the ideal customer profile, while managing the 3P side with less focus [34][35] Question: Timing of enablement campaigns - Management expects the majority of enablement campaigns to impact customer count more in the latter half of 2026 due to timing delays [56][63] Question: Pricing pressure and connection downsizing - Management stated that pricing on a per connection basis remains consistent, with downsizing driven by customer business losses rather than pricing sensitivity [77][78]