0001193125-26-175715
SEC filingRevenue grew 7.4% driven by cloud subscriptions, but net income declined 6.3% due to higher expenses and a lower tax benefit.
Revenue for the first quarter of 2026 was $282.2 million, a 7.4% increase from $262.8 million in the prior-year period. The growth was primarily driven by increased cloud subscriptions revenue, reflecting strong customer demand for cloud-based solutions over perpetual software licenses. Gross profit increased 5.0% to $155.6 million, with gross margin of 55.1%, as the revenue mix shifted toward cloud subscriptions.
Net income decreased 6.3% to $49.3 million, and diluted earnings per share declined 3.5% to $0.82. The decrease was primarily due to a higher effective tax rate compared to the prior-year period, which benefited from stock-based compensation deductions. The company continues to focus R&D resources on the development and enhancement of its core supply chain planning, supply chain execution, order management, and store software solutions, including cloud-based offerings.
Net cash provided by operating activities was $84.0 million, up from $75.3 million in the prior-year period. Capital expenditures were $4.1 million, resulting in free cash flow of $79.9 million. During the first three months of 2026, the company funded its business exclusively through cash generated from operations. The company also analyzed expected credit losses given future risks in projected economic conditions and future risks of customer collection.
The company develops, sells, deploys, services, and maintains software solutions designed to manage supply chains, inventory, and omnichannel operations for retailers, wholesalers, manufacturers, logistics providers, government agencies, and other organizations. Principal R&D activities have focused on the expansion and integration of new products and releases, including cloud-based solutions, while expanding the product footprint of its software solution suites in Supply Chain, Demand Forecasting and Replenishment, Omnichannel, and POS. The company expects to continue to focus its R&D resources on these core areas.