Sequential Revenue Recovery
Revenue of $61.7M: down 10% year-over-year but up 5% sequentially versus Q4, with management noting steady month-to-month improvement and an encouraging exit-rate trend for the quarter.
New QSR Win and Onboarding Progress
Secured a seven-figure quick-service-restaurant (QSR) contract (landed a little over 50% of the franchisee's portfolio), onboarded May 1 with minimal service change-outs — expected to ramp quickly and contribute gross profit dollars faster than typical new client wins.
Diversification and Share-of-Wallet Momentum
Business diversification into restaurants, hospitality, retail, grocery and healthcare; several dozen share-of-wallet wins noted and a sizable pipeline (share-of-wallet pipeline ~50% of new business pipeline) with five-to-six large expansion opportunities under active discussion.
Operational Excellence Driving Productivity
Operational initiatives (exception management, billing & collections, automated invoice-exception/no-touch capabilities, service optimization) are delivering improved execution, productivity and cost containment, and were credited with helping new/onboarded wins become full contributors.
SG&A Reduction and Expense Discipline
SG&A totaled $8.4M; SG&A decreased by $3.0M year-over-year (a 26% reduction YoY) reflecting continued cost discipline, despite a sequential SG&A increase of 9% driven primarily by resumption of bonus expense.
Working Capital and Cash Cycle Improvements
Operating cash flow slightly positive (~$0.2M) — a sharp improvement year-over-year; DSOs improved from the 80s a year ago to the mid-70s; accounts receivable up $3M in line with revenue; working capital days improved to 11.5 (roughly an 11-day improvement YoY).
Active Debt Management
Refinanced ABL with Texas Capital Bank and negotiated covenant easements with Monroe Capital through 2027; used ABL flexibility to make a $2.0M early payment on higher-cost Monroe term debt to reduce interest expense and free up cash for further debt paydown.