Strong Revenue Growth
Full-year 2025 revenue grew 28% year-over-year to $440.0 million; Q4 2025 revenue was $126.0 million, up 29% year-over-year.
Robust Profitability and Margins
Adjusted EBITDA for 2025 was $196.0 million (44% margin). Q4 adjusted EBITDA was $56.0 million (44% margin). Full-year net income was $103.0 million (versus a loss in 2024). Operating income for 2025 was $126.0 million (29% of revenue); Q4 operating income was $31.0 million (25% of revenue).
Strong Free Cash Flow and Capital Return
Generated $133.0 million in free cash flow in 2025. Announced a 3-year $400 million expansion of the share repurchase authorization (extended to March 2029); repurchased 25.1 million shares for approximately $450 million under the prior program and retain up to $450 million in repurchase availability.
Healthy User Monetization Metrics
Average MAU for 2025 was 15.0 million, average paying users ~1.26 million, and ARPU was $24.25. Implied payer penetration is roughly 8.4% (1.26M paying users / 15M MAU).
Clear 2026 Financial Outlook
Guidance for full-year 2026: revenue greater than $528.0 million and adjusted EBITDA greater than $217.0 million (implying >20% revenue growth y/y versus 2025). Management expects Q1 to pace well ahead of annual results.
Advertising and Direct Revenue Strength
Advertising business grew 37% in 2025; Q4 split showed direct revenue of $103.0 million and indirect revenue of $23.0 million, with subscription and add-on strength cited as drivers of outperformance versus prior guidance.
Rapid AI Adoption and Engineering Productivity Gains
In Q4, AI agents drove 60%–70% of new code. Engineers report roughly a 1.5x productivity improvement per person, enabling faster shipping and higher quality.
Product and Feature Progress
Expanded product features (Right Now, For You, Chat Summaries, A-List, Rewarded Video) and enhanced XTRA and Unlimited tiers. Launched Edge testing (premium AI tier) with stronger-than-expected demand in initial markets.
Operational Efficiency Improvements
Operating expenses (excluding cost of revenue) declined as a percent of revenue: Q4 fell to 50% from 54% year-over-year (a 4 percentage-point improvement); full-year opex ex cost of revenue declined to 46% from 48% in 2024 (a 2 percentage-point improvement).