Shares fell 6.3% as investors reacted to sequential revenue deceleration driven by seasonal payment processing declines and a cautious outlook for modest growth in revenue per client. Despite margin expansion and debt reduction, the lack of upward revision to growth targets and muted guidance weighed on sentiment.
- Q2 revenue grew 10% year-over-year to $129.5 million but declined about 1% sequentially, primarily due to seasonality in legacy payment processing.
- Adjusted EBITDA rose $10.8 million year-over-year to $32.9 million, with a 25% margin reflecting operational leverage.
- Average health care services clients increased by 36 sequentially to 4,744, supporting expected mid-single-digit AHSC growth for fiscal 2027.
- Revenue per client rose 4% year-over-year but declined about 2% from Q1, reflecting payment processing seasonality and modest growth expectations.
- Fiscal 2027 guidance was maintained at $510-$520 million revenue and $125-$135 million adjusted EBITDA, indicating no upside surprise amid ongoing restructuring and cautious optimism.
Community Discussion