AI-native Platform RepositioningManagement completed a strategic transformation to an AI-native skills platform and launched the next-generation Percipio. This structural shift ties proprietary content, platform and data to AI features, raising differentiation, product stickiness and scalable recurring revenue potential over years.
Margin Expansion And Cost DisciplineAdjusted EBITDA and margins have improved via $45M gross cost reductions and reinvestment into growth. Sustained expense discipline and operating leverage in the TDS software business can translate to durable margins as revenue stabilizes, improving cash conversion and reinvestment capacity.
Improving Cash GenerationOperating cash flow has returned to positive in recent years and free cash flow turned positive in 2025–2026. This steadier cash generation enhances financial flexibility to fund product development, reduce gross debt over time, and supports the transition to a higher-margin, AI-driven enterprise offering.