0001653558-25-000125
SEC filingRevenue grew 8.2% YoY to $705.9M driven by Treasury and Payables segments, while net income rose to $46.7M from $16.8M.
For the nine months ended September 30, 2025, consolidated revenue increased 8.2% year-over-year to $705.9 million, driven by growth across all segments. Net income rose to $46.7 million from $16.8 million, largely due to a $3.5 million bargain purchase gain from the Sila acquisition and a $23.5 million income tax benefit resulting from a valuation allowance release on interest limitation deferred tax assets. Operating expenses increased 8.1% to $598.1 million, with cost of revenue (excluding depreciation) up 5.6% and salary/employee benefits up 19.6% due to headcount growth and stock compensation.
Merchant Solutions revenue grew 4.1% to $476.8 million, driven by a 2.6% increase in total card processing dollar value and a 4.4% increase in transaction count, as well as a higher merchant card fee rate (0.85% vs 0.83% in prior year). However, Adjusted EBITDA fell 1.3% to $81.2 million due to mix-related margin compression and higher operating expenses.
Payables revenue increased 13.4% to $74.1 million, fueled by a 10.2% rise in buyer-funded card processing value, a 38.7% increase in ACH transaction count, and higher incentive income, partially offset by a 6.0% decline in supplier-funded issuing volume. Adjusted EBITDA more than doubled to $10.7 million from $5.2 million, reflecting operating leverage.
Treasury Solutions revenue grew 20.2% to $158.4 million, the strongest growth among segments, driven by a 29.9% increase in average billed clients, a 35.1% increase in average total account balances, and the Letus acquisition. Adjusted EBITDA rose 19.3% to $134.7 million.
Corporate segment costs increased to $61.5 million from $47.9 million, primarily due to higher professional fees, marketing, and non-recurring expenses.
Management expressed confidence in liquidity, stating cash on hand, operating cash flows, and $100.0 million in available revolving credit facility are sufficient for working capital needs over the next 12 months. No specific revenue or earnings guidance was provided. The company's debt refinancing extended maturities and reduced interest margins, while the One Big Beautiful Bill Act led to a valuation allowance release on interest limitation deferred tax assets, favorably impacting the tax rate. Key risks include margin compression in Merchant Solutions and integration of recent acquisitions (Letus, Sila, Boom).