Modest Revenue Growth with Back‑End Weighted Cadence
Consolidated Q4 revenue of $147.0M, up 1% year‑over‑year and up 6% sequentially; management expects 2026 revenue guidance of $572M–$585M (up to ~3% at the high end) with a back‑end weighted cadence.
Branded Products Growth and Acquisition Contribution
Branded Products revenue of $97.0M, up 5% year‑over‑year (and >$10M sequential increase); growth driven by the December 2024 3Point acquisition plus modest organic gains and large new program wins.
Meaningful Profitability Improvement
Q4 EBITDA was $8.6M, up from $7.3M (+~19% YoY); EBITDA margin improved 90 basis points to 5.9%; Q4 net income $3.5M vs $2.1M prior year and diluted EPS of $0.23 vs $0.13 (nearly doubled).
Expense Discipline and SG&A Reduction
SG&A reduced by ~$1.4M YoY despite revenue growth; SG&A as a percent of sales improved to 33.2% from 34.4% (≈120 bps improvement). Contact Centers SG&A reduced nearly $1M (≈10% YoY) via cost structure streamlining and AI.
Strong Cash Flow, Liquidity and Capital Returns
Year‑to‑date operating cash flow of $20M; cash and cash equivalents $24M (up $5M YoY); total liquidity (cash + revolver availability) >$100M. Q4 returned capital with $2M dividends and $2M in share repurchases (≈$10M remaining repurchase authorization).
Gross Margin Resilience
Consolidated gross margin of 36.9% nearly flat vs prior year (37.1%). Branded Products gross margin improved to 34.4% (up 50 bps YoY) despite higher tariffs; Healthcare Apparel gross margin largely flat at 33.6%.
Positive Outlook for 2026 EPS
Management provided 2026 diluted EPS guidance of $0.54–$0.66 versus $0.46 in 2025, implying meaningful earnings improvement driven by gross margin gains, SG&A discipline and lower interest expense.
Early 2026 Pipeline Conversions and AI Differentiation
Management reports early‑2026 conversions from a strengthened pipeline across segments; Contact Centers leveraging AI at scale (real‑time call scoring, coaching, noise cancellation, accent smoothing) as a competitive advantage and efficiency driver.