"Proprietary revenue growth -- Proprietary revenue increased 17% in fiscal 2025 and 23% in fiscal Q4 (period ended Dec. 31, 2025), outperforming overall trends. Network channel revenue decline -- The network channel saw approximately a 60% year-over-year decline, which management expects to stabilize at lower levels for fiscal 2026. Total revenue outlook -- Full-year revenue is guided to low single-digit percentage growth (1%-3%), with an expected flat to slightly down fiscal second quarter and mid-single-digit growth in the second half as network revenue stabilizes."
"Adjusted EBITDA guidance -- Adjusted EBITDA is anticipated to rise by $10 million to $15 million year over year, with guidance for $145 million to $150 million, excluding two $5 million high-confidence one-time items that may arise. Capital expenditure reductions -- Capital expenditures have been cut in half over the last three years; fiscal 2025 CapEx was $60 million, and fiscal 2026 CapEx is projected at $55 million."
"Brand marketing spend -- Offline brand marketing will return to 2024 levels, after a significant pullback in fiscal 2025, with $3 million allocated for new creative in fiscal Q1 and significant multi-channel reinvestment planned for domestic and international markets. Google SEO exposure -- Only about 7% of service requests (SRs), leads, and revenue now come from Google SEO, reflecting a marked reduction from prior years due to persistent headwinds."
Proprietary revenue increased 17% in fiscal 2025 and 23% in fiscal Q4, driven by product and service strength while overall revenue faces headwinds from the network channel. The network channel declined about 60% year over year and is expected to stabilize at lower levels in fiscal 2026. Full-year revenue is guided to 1%–3% growth, with a flat to slightly down fiscal Q2 and mid-single-digit growth in the second half. Adjusted EBITDA is guided to $145–$150 million, up $10–$15 million year over year, excluding two potential $5 million items. Capital expenditures were $60 million in fiscal 2025 and are projected at $55 million in fiscal 2026. Annualized restructuring savings are expected at $70–$80 million, yielding mid-$60 million in-year savings with $25 million from capitalized labor. Offline brand marketing will return to 2024 levels. Google SEO now accounts for about 7% of SRs, leads, and revenue. AI-powered service request paths are used by 35% of homeowners, converting to a pro at 3.3 times the rate of non-users.
Read at Aol
Unable to calculate read time
Collection
[
|
...
]