Madison Schurr

Madison Schurr inquired about the updated FY 2026 outlook, specifically the modest organic growth headwinds, and sought clarification on the sustainability of the strong recurring revenue growth. She also asked about the company's capital allocation strategy, including the balance between M&A and share buybacks, and recent buyback activity.

Answer

Geoff Smith, Chief Financial Officer, confirmed a slight organic growth tick-down due to lower professional services revenue, now projected at $31 million. He reaffirmed the 8%-10% organic recurring revenue growth target for FY 2026, noting the recent acquisition would further boost this. Regarding capital allocation, Mr. Smith stated the company made significant share buybacks in the last quarter, viewing the stock as inexpensive, and will continue an opportunistic approach.

Madison Schurr inquired about the FY 2026 updated outlook, specifically if organic growth had modestly ticked down and the drivers behind it. She also asked about the sustainability of the 8%-10% recurring revenue growth target and the company's capital allocation strategy, particularly regarding buybacks versus M&A, and any recent buyback activity.

Answer

Chief Financial Officer Geoff Smith confirmed a modest tick-down in organic growth, attributing it to a revised outlook for professional services revenue. He affirmed the 8%-10% organic recurring revenue growth target, noting the acquisition would further boost overall recurring revenue. Regarding capital allocation, Mr. Smith stated the company bought back a significant number of shares in the last quarter, viewing the stock as inexpensive, and confirmed an opportunistic approach to buybacks would continue.