0001638826-26-000047
SEC filingPlatform-driven revenue growth of 25% with expanding gross margins drove significant operating leverage, narrowing net loss by 51%.
For the three months ended April 30, 2026, total revenue grew 25% year-over-year to $268.8 million, driven by platform revenue growth of 25% ($260.6 million) and professional services growth of 7% ($8.3 million). The platform segment benefited from a 24% increase in subscription revenue and a 29% increase in usage-based revenue, supported by higher gross transaction volume ($21.7 billion vs $17.7 billion) and an improved earn rate. Gross profit expanded 31% to $193.8 million, with total gross margin improving from 68.8% to 72.1%. The expansion was primarily due to platform gross margin increasing 280 basis points to 78.7%, reflecting cost efficiencies at scale. Professional services gross margin remained deeply negative at -136.4% as the company continues investing in customer onboarding and support.
Operating expenses increased 11% to $219.6 million, but as a percentage of revenue declined from 91.8% to 81.7%, demonstrating operating leverage. Sales and marketing expense grew only 6% due to reduced impairment charges, while R&D increased 27% reflecting headcount additions and AI investments. General and administrative expense decreased 2% due to lower impairments. Loss from operations narrowed to $25.8 million from $49.5 million, and net loss improved to $22.8 million from $46.4 million. On a non-GAAP basis, net income was $36.7 million, up from $17.9 million, benefiting from a fixed tax rate of 18%.
Platform remains the dominant growth engine, contributing 97% of total revenue. Within platform, subscription revenue (the larger component) grew 24%, while usage-based revenue grew 29%, fueled by higher GTV and earn rate. The professional services segment, though small, grew 7% but continues to operate at a negative gross margin as the company prioritizes customer success and retention. The net dollar retention rate exceeded 110%, indicating strong cross-sell and upsell momentum among existing customers.
The MD&A does not provide specific numeric guidance for future periods. However, management notes that seasonality typically drives strongest sequential growth in Q2 (summer months for trades) and expects continued investment in R&D, particularly in AI capabilities with the pilot of Max. The company expects operating cash outflows to be highest in Q1 due to bonus payments. With a cash position of $421.5 million and $250 million available under the Amended Credit Agreement (undrawn), the company believes it has sufficient liquidity for at least 12 months. Strategic priorities include increasing GTV on the platform, retaining and expanding existing customer relationships, and building new AI-powered products.