Executive Summary

Q2 FY26 beat across revenue and EPS, with total revenue of $148.8M (+12% YoY) and non-GAAP diluted EPS of $0.22; beats were driven by U.S. mortgage upside, FX tailwinds, and solid execution . Versus S&P Global consensus, revenue beat by ~$5.6M (+3.9%)* and EPS beat by ~$0.08 (+58%)*.
Full-year FY26 guidance raised across revenue, subscription revenue, non-GAAP operating income, and non-GAAP EPS; ACV guidance maintained. Introduced Q3 guidance broadly in line with consensus (rev $146–148M; EPS $0.20–0.21) .
Strategic momentum: 80+ Banking Advisor customers and agentic workflows set to start rolling out next quarter; platform pricing conversion reached ~21% of ACV with targeted ~10% uplift on renewals; credit union traction (6 new logos, 35 cross-sells); first customer in Spain and an ABN AMRO go-live in EMEA .
Stock catalysts: raised FY guidance, AI adoption milestones (agentic workflows), and evidence of pipeline strength (management: “haven’t seen this level of activity in quite some time”) .

What Went Well and What Went Wrong

What Went Well

Broad-based outperformance: Subscription revenue rose 15% YoY to $130.8M and non-GAAP operating income rose 56% YoY to $30.0M; total revenue of $148.8M exceeded internal guidance .
Clear drivers of beat: ~$0.9M execution, ~$1.7M U.S. mortgage upside (subscription revenue $20.9M, +22% YoY), and ~$1.6M FX tailwind versus plan .
AI and platform pricing momentum: 80+ Banking Advisor customers; agentic workflows to begin rolling out next quarter; ~21% of ACV converted to platform pricing with targeted ~10% uplift on renewals .

What Went Wrong

GAAP profitability headwinds: GAAP loss from operations widened to $(9.3)M vs. $(7.9)M YoY; GAAP EPS of $(0.13) versus $(0.10) YoY, partly reflecting higher interest expense and other items .
Professional services softness by design: PS revenue down 2% YoY; management reiterates focus on PS gross profit and faster deployments over PS top-line growth .
Cautious mortgage stance: Despite Q2 upside, management refused to extrapolate mortgage strength; Q3 mortgage expected down QoQ (seasonality) and down YoY, keeping a conservative guidance posture .

Financial Results

Metric	Q4 FY25	Q1 FY26	Q2 FY26
Total Revenues ($M)	$141.370	$144.137	$148.815
Subscription Revenues ($M)	$124.957	$125.588	$130.752
Professional Services & Other ($M)	$16.413	$18.549	$18.063
GAAP Gross Margin %	60%	60%	59%
Non-GAAP Gross Margin %	66%	66%	66%
GAAP Operating Income ($M)	$(5.738)	$(1.513)	$(9.296)
Non-GAAP Operating Income ($M)	$24.380	$24.830	$30.010
GAAP EPS (Diluted)	$(0.16)	$0.05	$(0.13)
Non-GAAP EPS (Diluted)	$0.12	$0.16	$0.22
Free Cash Flow ($M)	$(10.369)	$52.602	$12.588

Segment/Geography and KPIs

KPI	Q4 FY25	Q1 FY26	Q2 FY26
Non-U.S. Total Revenues ($M)	$33.3	$31.6	$33.5
Non-U.S. Subscription Revenues ($M)	—	$25.9	$27.4
Cash, Cash Equivalents & Restricted Cash ($M)	$121.3	$133.6	$123.2
Revolving Credit Facility Outstanding ($M)	$166.0	$208.5	$203.5
Non-GAAP Operating Margin %	17%	17%	20%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenues ($M)	FY26	$578.5–$582.5	$585.0–$589.0	Raised
Subscription Revenues ($M)	FY26	$507.0–$511.0	$513.5–$517.5	Raised
Non-GAAP Operating Income ($M)	FY26	$112.0–$116.0	$117.5–$121.5	Raised
Non-GAAP EPS (Diluted)	FY26	$0.69–$0.72	$0.77–$0.80	Raised
ACV ($M)	FY26	$564.0–$567.0	$564.0–$567.0	Maintained
Total Revenues ($M)	Q3 FY26	—	$146.0–$148.0	New
Subscription Revenues ($M)	Q3 FY26	—	$127.5–$129.5	New
Non-GAAP Operating Income ($M)	Q3 FY26	—	$31.5–$33.5	New
Non-GAAP EPS (Diluted)	Q3 FY26	—	$0.20–$0.21	New
U.S. Mortgage Subscription Rev Growth	FY26	~Flat	~5%	Raised

Why the guidance raise: management flowed through ~~$0.9M execution beat, raised mortgage growth outlook (~~$1.7M Q2 upside but not extrapolated), and added ~$2.1M FX benefit vs plan; inorganic contributions unchanged .

Earnings Call Themes & Trends

Topic	Q4 FY25 (Prior-2)	Q1 FY26 (Prior-1)	Q2 FY26 (Current)	Trend
AI/Banking Advisor	Announced vertical AI focus; AI reducing processes “from days to seconds”; more capabilities planned for nSight	Released 16 new skills; BA not in FY26 plan; adoption focus	80+ BA customers; agentic workflows start rolling out next quarter; still no FY26 revenue from BA	Accelerating adoption; revenue contribution deferred
Platform Pricing	15% ACV on platform; ~1% FY26 uplift expected; 4-year transition	—	~21% of ACV converted; targeting ~10% uplift on renewals; BA pulling forward renewals	Progressing, uplift validated
Mortgage	FY26 guide assumed no YoY growth; 24 new IMB customers in FY25	Seasonal upside (~$0.8M); churn improved; cautious flow-through	U.S. mortgage subs +22% YoY; FY26 growth raised to ~5%; Q3 expected down QoQ (seasonality)	Improving with caution
International/EMEA	New EMEA leadership, focus beyond UKI; CSOB win	Non-U.S. rev +22% YoY; Japan momentum	First customer in Spain; ABN AMRO go-live; non-U.S. subs +30% (+27% cc)	Reaccelerating
Credit Unions	Dedicated CU go-to-market leveraging portfolio analytics	$800M CU expanded to multiple solutions	6 new CU logos, 35 cross-sells; one >$1M ACV	Ramping
PS Gross Margin	Expect improvement via AI, quicker deployments	Drag but improving over time	Focus on quicker deployments; gradual improvement into next year	Gradual improvement
Rule of 40	Target around Q4 next year; sustainable path	Reiterated	Reiterated confidence “around 2027” timeframe	Reaffirmed

Management Commentary

“We saw customer demand continue to strengthen in the second quarter… Our vision of being the leader in AI-banking is rapidly coming into focus….” — CEO Sean Desmond .
“Of the approximately $4.3M over performance against the top end of our second quarter subscription revenues guidance, $0.9M was execution, $1.7M from U.S. Mortgage… and $1.6M was favorable FX.” — CFO Greg Orenstein .
“We have now converted approximately 21% of our ACV to platform pricing… we like to target around a 10% uplift just on an apples-to-apples basis….” — CFO Greg Orenstein .
“Over 80 customers have now purchased [Banking Advisor]… agentic workflows… we plan to start rolling out to the market next quarter.” — CEO Sean Desmond .
“Despite… positive usage trends, the assumptions… for Banking Advisor… [are] that you’re still not going to see any revenue from that product this year.” — CFO Greg Orenstein .

Q&A Highlights

Platform pricing uplift and BA pull-through: Target ~10% renewal uplift; BA is pulling forward some renewals ahead of schedule .
Mortgage performance: Q2 upside concentrated in large IMB/homebuilder customers; guidance remains conservative with Q3 seasonality and no extrapolation .
Pipeline and visibility: Activity “hasn’t seen this level… in quite some time”; confidence in meeting/exceeding ACV outlook comes from H1 bookings and pipeline .
International: Signs of reacceleration in EMEA pipeline; first Spanish customer and ABN AMRO go-live underpin confidence .
Professional services and margins: Focus on PS gross profit and faster, AI-enabled deployments; improvements expected to be gradual into next year .

Estimates Context

Q2 FY26 vs S&P Global consensus: Revenue $148.8M vs $143.2M* (beat ~$5.6M); Primary EPS $0.22 vs $0.139* (beat ~$0.081); EBITDA $12.9M* vs $26.0M* (below)*. Values retrieved from S&P Global.
Q3 FY26 outlook vs S&P Global consensus: Guide revenue $146–148M vs $147.3M*; guide EPS $0.20–0.21 vs $0.207* — broadly in line; values retrieved from S&P Global.
Target price consensus: ~$35.61*; values retrieved from S&P Global.

Metric	Q2 2026 Actual	Q2 2026 Consensus	Q3 2026 Guidance	Q3 2026 Consensus
Revenue ($M)	$148.815	$143.167*	$146–$148	$147.312*
Primary EPS ($)	$0.22	$0.139*	$0.20–$0.21	$0.207*
EBITDA ($M)	$12.855*	$26.048*	—	$34.242*

Values marked with * were retrieved from S&P Global.

Key Takeaways for Investors

Q2 beat was high-quality, driven by U.S. mortgage volume strength, favorable FX, and execution; non-GAAP operating margin expanded to 20% . Near-term setup remains solid with raised FY guide.
Mortgage upside is real but management remains prudent; expect Q3 seasonal step-down and no broad extrapolation — reduces downside surprise risk but caps near-term upside .
AI narrative is intensifying with 80+ Banking Advisor customers and imminent agentic workflows; while FY26 revenue impact is deferred, BA is catalyzing renewals and supporting platform pricing uplift .
Platform pricing transition (21% of ACV) and targeted ~10% renewal uplift should structurally support growth and unit economics over the next renewal cycles .
International momentum is building (Spain entry, ABN AMRO go-live); non-U.S. subscription growth strong (+30% YoY), suggesting medium-term mix benefits .
PS gross margin improvement likely gradual; focus is on faster, AI-enabled implementations to reduce services intensity and accelerate time-to-value .
Trading implications: Near term, the raised FY guide and AI catalysts should support sentiment; medium term, watch conversion of pipeline to ACV and BA monetization in FY27 to drive re-acceleration and Rule of 40 delivery .

Appendices

Other relevant press releases (Q2 FY26 window):

Q2 timing announcement (housekeeping) .

Prior quarters for trend analysis:

Q1 FY26 8-K/press release and transcript show revenue $144.1M, non-GAAP EPS $0.16, and initial FY26 guidance later raised this quarter .
Q4 FY25 press release and transcript provide baseline, FY26 initial guide, and strategic framework (vertical AI, platform pricing shift) .

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