0001810806-26-000032
SEC filingRevenue grew 16.8% to $508.2M, but GAAP profitability deteriorated sharply due to impairment charges, resulting in a net loss of $347.6M.
Revenue for the first quarter of 2026 was $508.2 million, a 16.8% increase from $435.0 million in the same period last year. The growth was primarily driven by an increase in Create Solutions revenue, reflecting higher subscription revenue, partially offset by a decline in cloud and hosting services revenue as a result of the company's portfolio reset in 2025.
Net loss was $347.6 million, or $(0.80) per diluted share, compared to a net loss of $77.6 million, or $(0.19) per diluted share, in the prior year. The increase in net loss reflects the impairment charges and lower gross profit.
Net cash provided by operating activities was $71.3 million, up from $13.0 million in the prior year. Capital expenditures were $4.8 million, resulting in free cash flow of $66.5 million. The improvement in operating cash flow was driven by working capital changes. The company believes it will meet longer-term cash requirements through a combination of operating cash flows, available cash, and potential equity or debt transactions.
Management expects to continue incurring GAAP operating losses for the foreseeable future due to ongoing investments in research and development, sales and marketing, and general and administrative activities.