Strong Revenue Growth
Consolidated revenue of $20.7M, up 29% year-over-year; organic revenue growth of 15.9% excluding the ESI acquisition contribution.
Sustained Profitability
GAAP net income of $0.6M (approx. $0.02 per share) and non-GAAP net income of $3.3M (approx. $0.10 per share); 11 consecutive quarters of GAAP profitability and 30 consecutive quarters of non-GAAP net income.
Segment Performance — Service & Software
Service revenue $10.6M, up 29% YoY with gross margin ~63%; Software Solutions revenue $7.7M, up 12% YoY with gross margin ~68% (software margins improved 500 bps QoQ).
Product Revenue Acceleration
Product revenue increased 141% to $2.4M, demonstrating strong sales activity (noting mix impact on margin).
ESI Acquisition Driving Early Benefits
Closed Estech Systems (ESI) on March 1; contributed $2.1M of revenue in the quarter, added ~$49.6M to remaining performance obligations, integration ahead of plan, and early synergies and cross-team collaboration exceeding expectations.
Growing Backlog / Revenue Visibility
Remaining performance obligations (RPO) rose to $135.6M (up from $89.1M at Dec 31, 2025), with $46M of RPO expected to be recognized in the rest of 2026, providing multi-quarter revenue visibility.
AI and Ecosystem Momentum
Launched CAIRO (AI receptionist orchestrator); initial uptake promising — management estimates CAIRO can increase ARPU by over 25% for a typical SMB (average retail revenue per account ~$350/month). EVP partner program expanded to 48 partners (11 AI-focused).
Improving Operational Metrics
Service gross margin improved ~300 bps QoQ; adjusted EBITDA $3.2M and EBITDA $1.6M; management expects continued margin expansion as synergies and OCI migration savings are realized.
Prudent Financial Optionality
Secured $5M term loan and $5M revolving credit facility on attractive terms to preserve optionality for accretive M&A (management reiterates funds drawn only when needed).