Beat Guidance and Outperformed Expectations
Company exceeded guidance for Q1 2026 on revenue, adjusted EBITDA, and free cash flow; consolidated revenue decline was only ~3% versus prior expectation of high single digits.
Project Revenue Rebound
Project revenue was $36M, up 29% year-over-year, contributing materially to the quarter's outperformance (after a prior-quarter decline of 27% in Q4).
Strong Free Cash Flow and Liquidity
Generated free cash flow of $53M in Q1, a 20% increase YoY; exited the quarter with total liquidity >$500M (cash $178M and $330M revolver availability).
Adjusted EBITDA and Margin Resilience
Adjusted EBITDA was $104M with near 20% margin; margin decline was limited (management cited a ~200 basis point decline) and the EBITDA shortfall was smaller than anticipated due to revenue flow-through and timing of expenses.
Improved Commercial Execution and Renewal Momentum
Management reported improved new sales activity and renewal execution in Q1, with a stronger RFP/new-business season versus the prior year and increased client engagement (CEO met 90+ clients YTD).
Expanded Strategic Account Coverage
Coverage increased from top 100 to top 400 accounts, which represent just over 90% of ARR, aimed at improving retention and pipeline development.
Leadership & Talent Additions
Several senior hires and appointments announced, including a new CTO (Naveen Bhawaja) and President of Employer Solutions (Dinesh Solsiani), plus additions across delivery, sales, account management, and marketing to accelerate execution.