Shares jumped 19.6% post-earnings, driven by upside on revenue and EBITDA margins against guidance and strong growth outside the largest client despite ongoing headwinds from that key relationship.
- Q2 revenue was $309 million, beating the top end of guidance by $10.9 million (+3.6%) with 5% year-over-year growth.
- Adjusted EBITDA margin came in at 18.7%, 70 basis points above guidance, delivering $57.7 million in adjusted EBITDA, 7.5% ahead of expectations on a dollar basis.
- Revenue from the largest client fell by approximately 22% year-over-year, impacting total revenue concentration which dropped to 20% from 26% last year.
- Excluding the largest client, revenue grew about 15% year-over-year, with the second through twentieth largest clients expanding roughly 30%, showing accelerated momentum versus Q1.
- Strong adjusted free cash flow of $36.4 million reduced net leverage below 1.3x, supporting continued investments in AI and growth initiatives.
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