Financial Data and Key Metrics Changes - The company reported total revenue of $87.7 million for Q2 2025, representing a 0.3% increase compared to Q2 2024, marking the first quarterly year-over-year revenue increase in eight quarters [32] - Adjusted EBITDA for Q2 2025 was $48.1 million, a decrease of 2.1% from Q2 2024, primarily due to planned headcount increases [32] - Adjusted net income for Q2 2025 was $28.4 million, up 3.2% from the prior year, driven by lower interest expenses and depreciation [33] - Free cash flow increased by 29% to $20.3 million compared to Q2 2024, attributed to effective management of receivables and lower interest expenses [11][33] Business Line Data and Key Metrics Changes - Corporate revenue reached a record $55.3 million in Q2 2025, a 6.9% increase from $51.7 million in Q2 2024, marking the highest growth in the past ten quarters [14][27] - SOHO revenue was $32.4 million, reflecting a planned decrease of 9.4% from $35.8 million in the prior year [22][29] - The corporate customer base grew to approximately 63,000, an 11% increase year-over-year, with a trailing twelve months revenue retention rate of 102% [16][27] Market Data and Key Metrics Changes - The company noted strong performance in the healthcare vertical, which is becoming a larger portion of total corporate revenue [15] - The public sector pipeline remains robust, with ongoing discussions and progress in the VA rollout [19][20] Company Strategy and Development Direction - The company aims to pursue customer acquisitions primarily in the healthcare space and drive revenue growth exceeding 6.25% for the year [7] - A focus on optimizing profitability in the SOHO channel while managing advertising investments is emphasized [22][24] - The company is studying the impact of the One Big Beautiful Bill Act, particularly regarding anticipated cuts to Medicaid and Medicare, and believes it is well-positioned to assist providers in reducing costs [12][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit growth for the corporate business channel, supported by a strong sales pipeline [15] - The company is not experiencing a slowdown in demand from healthcare providers, despite challenges faced by major hospital systems [44][45] - Management expects to maintain a retention rate above 100% and is actively working on programs to improve customer retention [50] Other Important Information - The company concluded a $225 million bank facility to retire 6% notes due in October 2026, consisting of a $150 million term loan and a $75 million revolver [8][35] - The company repurchased approximately $12 million of its common stock during the quarter at an attractive valuation [11][33] Q&A Session Summary Question: Thoughts on demand and pipeline amidst hospital system challenges - Management indicated that they are not experiencing a slowdown and have closed significant deals with large health systems recently [44][45] Question: Drivers behind improved revenue retention rate - Key drivers include large strategic accounts, improved service methodologies, and programs targeting churn in the SMB sector [48][50] Question: Length of sales cycle in the public sector and partnerships - Sales cycles vary significantly, with smaller deals closing quickly while larger government contracts may take years [52][53] - The partnership with Accenture is progressing well, enhancing the company's position in the public sector [54]

Financial Performance - Consolidated revenue increased by 0.3%, reaching $87.721 million in Q2'25[33, 42] - Adjusted EBITDA decreased by 2.1% year-over-year, totaling $48.065 million, with an adjusted EBITDA margin of 54.8%[33, 50] - Adjusted EPS increased by 2.0% year-over-year[33] - Free cash flow for Q2'25 was $20.3 million, compared to $15.8 million in Q2'24[36] Corporate Business - Corporate revenue increased by 6.9% to $55.3 million in Q2'25, compared to $51.7 million in Q2'24[13] - Corporate revenue retention rate improved to 102% in Q2'25, up from 99% in Q2'24[13] - Total corporate customer count increased to 63,000 in Q2'25, compared to 56,000 in Q2'24, an 11.3% increase[13, 20] SoHo Business - SoHo revenue decreased to $32.4 million in Q2'25, compared to $35.8 million in the previous year, a 9.4% decline[16] - SoHo account base was 682,000 in Q2'25, compared to 702,000 in Q1'25[16] - SoHo churn rate increased to 3.84% in Q2'25, compared to 3.52% in Q1'25[16] Capital Allocation - The company repurchased 546,000 shares for approximately $12 million in Q2'25[36] - Bond repurchases in Q2'25 amounted to approximately $6 million face value[36] - A $225 million credit facility was executed, including a $150 million delayed draw term loan and a $75 million revolving credit facility[36]

Financial Data and Key Metrics Changes - Corporate revenue for Q1 2025 reached $54.3 million, representing a 5.6% increase compared to $51.4 million in Q1 2024, marking the best growth in eight quarters on a normalized basis [6][24] - Adjusted EBITDA for Q1 2025 was $47.3 million, a decrease of 1.7% year over year, with a margin of 54.2%, exceeding expectations by 100 basis points [27][29] - Free cash flow for the quarter was $33.7 million, slightly down from $35.8 million in Q1 2024 due to increased receivables [9][30] Business Line Data and Key Metrics Changes - The SOHO channel revenue was $32.8 million, down 10.6% from $36.8 million in Q1 2024, reflecting a strategic focus on profitability [20][25] - Corporate customer base grew to approximately 60,000, a 9% increase year over year, with a revenue retention rate of 101% [15][24] - ARPA for corporate customers was $307, down $10 year over year, while SOHO ARPA was $14.83, showing a minor decrease [17][26] Market Data and Key Metrics Changes - The company noted a positive trend in corporate ARPA, increasing by almost $3 sequentially, while SOHO customer count decreased from 747,000 to 730,000 [21][29] - The VA deployment continues to gain momentum, with significant usage increases and new deployments proceeding as planned [18] Company Strategy and Development Direction - The company aims to acquire customers primarily in the healthcare space and drive revenue growth to 6.25% for the year [7] - Focus on managing cost structures while making modest investments in go-to-market operations for future benefits [7] - Continued emphasis on the core fax business, which contributes over 90% to corporate revenue, while also enhancing advanced solutions like Unite and Clarity [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit growth for the corporate channel, despite potential economic slowdowns [14][11] - The company is not currently seeing impacts from tariffs and is closely monitoring the economic environment [10][11] - Guidance for full-year revenue is set between $343 million and $357 million, with adjusted EBITDA between $179 million and $190 million [31] Other Important Information - The company repurchased approximately $10 million of debt in Q1 2025, with a total of $223 million repurchased since the program's launch [9][28] - Cash at the end of Q1 2025 was approximately $53 million, sufficient to fund operations and debt repurchases [29] Q&A Session Summary Question: Can you talk about growth in corporate revenue and VA deployment? - Corporate growth was supported by strong usage across fax brands and good adoption of advanced solutions, with the VA's FedRAMP high certification unlocking new opportunities [36][39] Question: When would you expect the decline in SOHO revenue to moderate? - The decline is influenced by advertising spend and profitability; the company is monitoring these closely to determine future actions [42][45] Question: Are there notable ads for larger enterprise accounts? - The company is adding customers across the board, including large enterprises, and has a robust pipeline for new customers [78][81]

Financial Performance - Q1 2025 consolidated revenue declined by $1 million, a 1.1% decrease year-over-year[29] - Adjusted EBITDA decreased by $0.8 million, a 1.7% decrease year-over-year, with an adjusted EBITDA margin of 54.2%[31] - Adjusted EPS decreased by $0.03, a 2.1% decrease year-over-year[31] - Q1 2025 free cash flow was $33.7 million, compared to $35.8 million in Q1 2024[33] Corporate Business - Corporate revenue for Q1 2025 increased by 5.6% to $54.3 million, compared to $51.4 million in Q1 2024[13] - Corporate revenue retention rate was 101% in Q1 2025, compared to 97.9% in Q1 2024[13] - Total corporate customer count reached 60,000 in Q1 2025, compared to 55,000 in Q1 2024[13] SoHo Business - SoHo revenue for Q1 2025 was $32.8 million, compared to $36.8 million in the previous year, indicating a slowing rate of decline[16] - SoHo account base was 730,000 in Q1 2025, compared to 747,000 in Q4 2024[16] - SoHo churn rate was 3.26% in Q1 2025, compared to 3.38% in Q4 2024, representing the lowest churn rate in 14 quarters[16] Capital Allocation - Bond repurchases in Q1 2025 amounted to approximately $10 million face value, with an additional $6 million repurchased to date in Q2 2025[33] - Total bond repurchases to date reached $223 million for a cash outlay of $209 million[33] - The company's cash balance was approximately $53 million in Q1 2025[33] Financial Guidance - The company reaffirmed its full-year 2025 revenue guidance, projecting between $343 million and $357 million[35] - The company provided Q2 2025 revenue guidance, projecting between $85 million and $89 million[36]