0001057352-26-000035
SEC filingRevenue was $897.0M (22.5%) Gross Profit was $701.0M (21.1%) Operating Income was $3.0M (107.0%) Net Income was $3.0M (120.3%)
Revenue for the first quarter of 2026 was $897.0 million, a 22.5% increase compared to $732.2 million in the same period last year. The growth was primarily driven by the acquisitions of Domain and Matterport, which contributed to higher subscription and services revenue. Gross profit increased 21.1% to $701.0 million, resulting in a gross margin of 78.1%, slightly down from 79% in the prior year due to higher cost of revenue associated with the acquisitions.
Operating income improved significantly to $3.0 million from a loss of $42.8 million in the prior year, a 107% increase. This swing to profitability was driven by revenue growth and lower general and administrative expenses as a percentage of revenue. Net income was $3.0 million, or $0.01 per diluted share, compared to a net loss of $14.8 million, or $(0.04) per diluted share, in the prior year. The improvement reflects higher revenue and operating leverage, partially offset by increased personnel costs from acquisitions.
The company's cash and cash equivalents decreased during the quarter due to financing activities, including stock repurchases. The exact cash balance is not disclosed in the provided data. The company continues to invest in acquisitions and organic growth, with a focus on integrating Domain and expanding into new markets.
Management plans to continue integrating Domain and expects to launch LoopNet into the Australian market. The company also expects to expand its existing information, analytics, and online marketplaces. However, future product development or expansion efforts could reduce profitability and increase capital expenditures. The company views EBITDA, Adjusted EBITDA, and other non-GAAP measures as key operating performance metrics.