Revenue Beat and Top-Line Growth
Q1 revenue of $306.3 million, up 10.3% year-over-year and approximately 3% ($8.3M) above the top end of guidance/expectations.
Strong Adjusted EBITDA and Margin
Adjusted EBITDA of $58.6 million representing a 19.1% margin, roughly 3.5% ahead of the adjusted EBITDA dollars implied by prior top-end Q1 margin guidance.
Robust Cash Generation and Shareholder Return
Q1 adjusted free cash flow of $42.2 million (72.1% of adjusted EBITDA YTD), ending cash of $152.3 million, net leverage <1.4x, and >$330 million returned to shareholders via a $3.65 per share special dividend.
AI Services Outperformance
AI Services revenue of $61.9 million, up 36.1% year-over-year (fastest-growing service line); >40% of Q1 signings in AI Services; management expects revenue from autonomous vehicle/physical AI clients to more than triple in 2026.
Healthy Growth Outside Largest Client
Excluding the largest client, revenue grew ~13.5% YoY in Q1; clients 2–20 grew well north of 20%, and growth in top 10 clients excluding the largest was well over 30%.
Service Line Performance and Market Momentum
Digital Customer Experience (DCX) delivered $168.5M (+5.4% YoY) and Trust & Safety delivered $75.8M (+4.7% YoY); Q1 signings were strong and >75% of signings were expansions with existing clients, with notable strength in mobility, logistics & travel, social media, health care and technology.
Balance Sheet and Financing Actions
Completed refinancing with a $500M term loan (maturing 2031) at SOFR + 2.75% and an undrawn $100M revolver, maintaining financial flexibility to invest in growth.
Improved Cost Discipline and Lower CapEx Outlook
SG&A declined to 19% of revenue (from 20.7% prior-year) and Q1 CapEx YTD of $10.2M; full-year CapEx guidance reduced to ~$50M (a $10M reduction versus prior outlook).