Strong Cloud and Subscription Revenue Growth
Cloud subscription revenue grew 25% year-over-year to $124.5M (20% constant currency). Total subscription revenue grew 19% to $160.3M and total revenue grew 21% to $202.2M.
Improved Profitability and Cash Generation
Adjusted EBITDA was $26.6M (up from $16.8M a year ago). Net income was $19.8M ($0.27 per diluted share) versus $9.8M ($0.13) prior year. Cash and investments were $206M (up from $187.2M) and cash provided by operations was $48.8M (vs $45M).
Rule of 40 and Go-to-Market Efficiency
Weighted Rule of 40 scored 42 (highest since metric introduced). Go-to-market efficiency improved for the 11th consecutive quarter.
Strong ARR Expansion and Bookings Mix
Cloud net ARR expansion was 115% (vs 112% a year ago and 114% in prior quarter). Cloud net new ACV was ~82% of total net new software bookings in Q1.
AI Adoption and Product Wins (DocCenter & Agents)
Nearly 40% of customers purchased AI-inclusive license tiers. DocCenter ran at >95% accuracy vs ~60% for traditional tech; Q1 document pages processed exceeded all of 2025. Multiple customers committed 7-figure software deals tied to AI and modernization use cases.
Raised Full-Year Guidance and Increased Buyback
Raised FY cloud subscription guidance to $515M–$521M (~18% growth at midpoint), total revenue guidance to $819M–$831M (~13% at midpoint), and adjusted EBITDA to $97M–$105M. Increased share repurchase authorization from $50M to $100M and repurchased $21.8M in Q1.
Regional and Strategic Momentum
EMEA was a standout with several large deals; federal business and legacy modernization traction noted with large customer wins (e.g., U.S. Air Force, major European automaker). Professional services revenue rose 31% to $41.9M.