-
Completed ‘Chapter 2’ of corporate transformation, shifting the business model from legacy print toward a high-margin, software-centric compliance platform.
-
Achieved record adjusted EBITDA margins of 31.3% for the full year despite lower overall revenue, demonstrating structural profitability gains from a more favorable sales mix.
-
Software Solutions now represent approximately 47% of total net sales, driven by 13% aggregate growth in recurring compliance products ActiveDisclosure and Arc Suite.
-
ActiveDisclosure performance improved through higher net client counts and increased value per client following a full product transition completed in 2023.
-
Strategic exit from low-margin print work and secular declines in physical distribution are being intentionally managed to prioritize tech-enabled services.
-
Deployed ‘Active Intelligence’ AI capabilities to automate research and analysis for SEC filings, aiming to increase development velocity and client productivity.
-
Maintained dominant market share in high-quality IPO and M&A transactions, capturing 65% of IPOs raising over $100 million in the fourth quarter.
-
Entering ‘Chapter 3’ of the transformation journey, targeting predictable organic top-line growth with recurring and reoccurring revenue approaching 80% of the total mix.
-
Anticipate more modest growth for Arc Suite in 2026 as the company overlaps the significant impact of the Tailored Shareholder Reports (TSR) regulation.
-
Expect the new ArcFlex offering for private investments to begin contributing meaningful incremental revenue starting in 2027.
-
Q1 2026 guidance assumes transactional sales between $45 million and $50 million, reflecting a cautious outlook due to potential market volatility impacting deal timing.
-
Projected 2026 capital spending of $55 million to $60 million will focus on software development and internal AI productivity tools.
-
Accelerated share repurchases in Q4, buying back approximately 1.3 million shares; total 2025 repurchases represented about 12% of outstanding shares.
-
The U.S. government shutdown in late 2025 temporarily paused deal completions, followed by a rapid resumption of activity in mid-November.
-
Management noted that while tech valuations have contracted, M&A price expectations have not yet fully adjusted to reflect lower market multiples.
-
Net leverage remains low at 0.6x, providing significant financial flexibility for future capital deployment or strategic investments.
