Q: There is growth here but the market did not like quarter report. What do you see here?
5i Research Answer:
EPS of 5c missed estimates of 8c; revenue of $45.98M slightly missed estimates. EBITDA of $3.2M missed estimates by 4.5%. SaaS revenue rose 25%. 2026 guidance was maintained. 21,300 shares were bought and cancelled. Guidance calls for 8% to 10% revenue growth next year, so there is somewhat of a deceleration expected, and this has hurt investment sentiment. Based on consensus, much better EPS growth is expected in fiscal 2027, which is why investors continue to afford it a very expensive P/E multiple. It has net $31M cash. Insiders own ~16%. We would consider it OK, but its small size, weak momentum and high valuation temper our interest right now.