Enterprise North America Invoiced Growth
Invoiced amounts in Enterprise North America grew 7% year-over-year in Q1; excluding government contracts (DOGE comps), North America invoiced amounts grew 13%.
Strong New-Logo Subscription Momentum
New logo subscription invoiced amounts increased 25% year-over-year in Q1, indicating improved win rates from the go-to-market transformation.
Services Demand and Booking Pace
Services booking pace rose 29% in the quarter; services attach rate in Enterprise remained strong (~55% apples-to-apples), and $5.6 million of contractually committed predefined services were invoiced.
Deferred Revenue and Deferred Subscription Balances Increasing
Consolidated deferred revenue increased 5% year-over-year to $100.2 million; North America deferred subscription balance grew 8% to $49.1 million, providing a runway for future reported revenue.
Subscription Revenue Recognition Stability
Consolidated subscription revenue recognized in Q1 was flat year-over-year at $37 million despite lower reported revenue overall, reflecting subscription durability.
International Licensee Growth (Ex-China)
Enterprise International results were roughly flat overall, with revenue down slightly to $11.2 million; excluding China, International revenue grew modestly (4%) and licensee revenue increased 8%.
Reaffirmed Full-Year Guidance and Multi-Year Outlook
Company reaffirmed fiscal 2026 guidance: revenue $265M–$275M and adjusted EBITDA $28M–$33M, and reiterated expectation of stronger reported revenue, adjusted EBITDA and free cash flow acceleration in fiscal 2027.
Liquidity and Share Repurchases
Strong liquidity with $80 million total liquidity ($17.5M cash on hand and $62.5M undrawn facility). Repurchased ~582,000 shares for $10.4 million in the quarter and continued 10b5-1 repurchase activity.