Capital Allocation and Shareholder Return Strategy
The company is committed to returning capital to shareholders through share repurchases and debt reduction, leveraging improved EBITDA and free cash flow.
Management announced a plan to reduce stock-based compensation as a percentage of revenue to mid- to high-single digits in 2026.
The company has no near-term plans for acquisitions, focusing instead on profitability and organic growth.
Leadership emphasizes that profitability improvements will help close the gap between intrinsic and market value, benefiting shareholders.
Mike Tokich announced his retirement after 18 years with the company, with Karen, his long-time colleague, set to succeed him as CFO.
Mike expressed confidence in Karen's leadership and financial capabilities, highlighting their 20-year working relationship and her preparation for the role.
The company will benefit from a smooth transition, with Mike remaining as a special financial adviser to support continuity.
This leadership change underscores the company's stability and strategic focus on long-term growth and governance.
Dafinchi