Revenue and Adjusted EBITDA Performance
Revenue in the third quarter was $67.1 million, and adjusted EBITDA was $7.3 million, which exceeded expectations. The adjusted EBITDA was higher than the expected range of $4 million to $6.5 million.
Cost Reduction Initiatives
Successful implementation of cost reduction initiatives that are expected to result in meaningful year-over-year increases in adjusted EBITDA next year. The cost savings will annualize into $8 million in fiscal year 2026.
Enterprise North America Go-to-Market Strategy
Strong traction in the implementation of the new go-to-market strategy in the Enterprise North America business, leading to an increase in new client wins and expansion within existing client organizations.
Education Business Strength
The Education segment showed strength with a 13% increase in subscription revenue and a 21% increase in deferred revenue balance, despite uncertainties such as the ESSER funds expiration.
Client Retention and Multiyear Contracts
The majority of clients continue to renew subscriptions. Multiyear All Access Pass contracts increased to 58% from 55% last year, and the revenue under multiyear contracts increased to 62%.