"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. Restructuring savings -- Management expects annualized restructuring savings of $70 million to $80 million, resulting in in-year savings in the mid-$60 million range with $25 million attributed to capitalized labor."
Proprietary revenue increased 17% in fiscal 2025 and 23% in fiscal Q4 (ended Dec. 31, 2025), outperforming overall business trends. The network channel declined about 60% year over year and is expected to stabilize at a lower level through 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 as network revenues stabilize. Adjusted EBITDA guidance is $145M–$150M, up $10M–$15M year over year, excluding two potential $5M one-time items. CapEx is reduced to $55M for fiscal 2026, and restructuring is expected to deliver $70M–$80M annualized savings.
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