Revenue and Profitability
- Revenue: $396.8 million, YoY -15.30%, QoQ -1.93%
- Gross Profit: $274.331 million, Gross Margin 69.14%, YoY -17.33%, QoQ -8.68%
- EBITDA: $65.195 million, EBITDA Margin 16.43%
- Operating Income: $34.001 million, Operating Margin 8.57%, YoY -57.39%, QoQ -34.40%
- Total Other Income/Expenses Net: $(13.256) million
- Income Before Tax: $17.707 million, Tax Expense: $6.007 million
- Net Income: $11.700 million, Net Margin 2.95%, YoY -53.69%, QoQ +150.97%
- Earnings Per Share (EPS): $0.22, Diluted EPS $0.22, YoY -52.17%, QoQ +151.16%
Balance Sheet and Leverage
- Total Assets: $2.524 billion
- Total Liabilities: $1.791 billion; Total Stockholders’ Equity: $0.733 billion
- Cash and Cash Equivalents: $81.85 million; Net Debt: $842.13 million; Total Debt: $923.98 million
- Current Assets: $420.30 million; Current Liabilities: $648.84 million; Quick Ratio approximately 0.61; Current Ratio < 1 indicates near-term liquidity pressure
- Non-current Assets: Goodwill $1.118 billion; Intangible Assets $580.33 million; Deferred Revenue Non-Current: N/A; Long-term debt $896.47 million; Deferred Tax Liabilities (Non-Current): $104.11 million
Cash Flow and Working Capital
- Net Cash Provided by Operating Activities: $(85.01) million
- Capital Expenditures: $(12.01) million; Free Cash Flow: $(97.01) million
- Working Capital Change: $(153.54) million; Other Working Capital: $(153.54) million; Other Non-Cash Items: $14.49 million
- Free cash flow negative despite a modest capex program, underscoring working-capital intensity and nondiscretionary operating costs
Revenue Mix and Margin durability
- Gross margin remains historically robust (>69%), indicating pricing power or favorable product mix in certain publishing segments, even as revenue declines
- Operating leverage appears limited in QQ1 2026 given negative cash flow and elevated operating expenses, including a sizable line item labeled “Other Expenses” at $240.33 million that effectively offsets operating income gains
- Deferred Revenue stands at $361.68 million, signaling durable liability-backed revenue recognition and potential future cash flow normalization if renewals hold