Red Flags Detected

• ⚠ Revenue Decline Accelerated to 28.4% (worsened) — Revenue fell 28.4% YoY, a sharp acceleration from the 6.1% decline in the prior-year quarter, driven by the intentional wind-down of Marketing Services.
• ⚠ Operating Income Swung to a Loss (worsened) — Operating income swung from a $29.5M profit to a $1.1M loss, reflecting lower revenue and higher costs as a percentage of revenue.
• ⚠ Saas Growth Stalled and Retention Deteriorated (worsened) — SaaS revenue declined 0.5% and seasoned net revenue retention fell to 90% from 102%, indicating shrinking revenue from existing clients.
• ⚠ New Restructuring Program (new) — The company initiated restructuring activities in Q2 2026, incurring $3.1M in costs and expecting an additional $17M-$22M through 2027.
• • Irs Tax Notices Reclassified $28.6m (unchanged) — IRS notices for tax years 2012-2015 caused $28.6M of uncertain tax position liability to be reclassified to income taxes payable, with a 60-month payment plan expected.