"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."
Proprietary revenue grew 17% in fiscal 2025 and 23% in fiscal Q4, outperforming broader trends. The network channel declined roughly 60% year over year and is expected to stabilize at lower levels in fiscal 2026. Full-year revenue guidance is 1%–3%, 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, a $10–15 million increase year over year, excluding two potential $5 million one-time items. Fiscal 2025 CapEx was $60 million and fiscal 2026 CapEx is projected at $55 million. Management expects annualized restructuring savings of $70–80 million. Offline brand marketing will return to 2024 levels with $3 million for new creative, Google SEO now represents about 7% of service requests, and 35% of homeowners use the AI-powered SR path, converting at 3.3x the rate of non-users.
#revenue-guidance #proprietary-revenue-growth #adjusted-ebitda #restructuring-savings #ai-initiatives
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