Adjusted net income was $9.3 million with adjusted diluted EPS of $0.33, up from $0.30 prior year.
Fiscal 2026 Q1 revenue was a record $76.7 million, up 21% year-over-year, driven by 44% growth in subscription revenue and 16% growth in professional services revenue.
Free cash flow was negative $5 million due to working capital timing and other factors; the company is now debt-free after paying off its credit revolver.
Gross profit was $47.3 million with a margin of 61.7%, slightly down from 62.8% due to onetime revenue margin impacts and ramping professional services costs.
Operating income was $4.5 million and net income was $4.9 million, lower than prior year due to planned one-time costs including the user conference.
Professional services revenue was a record $18.1 million, up 16% year-over-year, indicating strong implementation activity.
Recurring revenue reached a record $48.6 million, representing 63.4% of total revenue, with subscription revenue comprising 65.6% of recurring revenue.
Subscription revenue grew 44.3% year-over-year, with organic subscription revenue up 24%, including a 48% increase in PMS-related revenue and 16% increase in POS-related revenue.
Adjusted EBITDA was $804 million, down 7.3% year-over-year but slightly up sequentially, with a margin of 37.4% declining 130 basis points year-over-year.
Broadband ARPU grew 0.9% year-over-year to $74.77, while residential ARPU declined 1.7% to $133.68, pressured mainly by video.
Cash capital expenditures were $384 million in Q2, up 10% year-over-year, with full year 2025 CapEx expected around $1.2 billion.
Gross margin expanded by 120 basis points to 69.1%, driven by a shift towards broadband and optimized video margins.
Other operating expenses increased by approximately 4%, driven by consulting fees, sales and marketing investments, and employee health and wellness costs.
Total revenue declined 4.2% year-over-year, primarily due to video cord-cutting which accounted for about 85% of the decline.
Blend Labs reported total revenue of $31.5 million in Q2 2025, representing a 10% year-over-year increase and surpassing the midpoint of guidance.
Consumer banking suite revenue grew 43% year-over-year to $11.4 million, while mortgage suite revenue declined 3% to $18 million due to lower EVPFL.
Free cash flow was negative $9 million, compared to negative $5.1 million in the prior year quarter.
Non-GAAP gross margin improved to 76% from 71% in Q2 2024, with non-GAAP operating income of $4.7 million and a 15% operating margin.
Remaining performance obligations (RPO) reached a record $190 million, up from $158 million in Q1 2025.
The company repurchased approximately 1.3 million shares worth over $4 million year-to-date, with $20.9 million remaining under the repurchase authorization.
Local Media revenue declined 8% year-over-year due to lack of political advertising in an off-election year, but core advertising outperformed peers driven by local sports rights and NBA/NHL playoffs contributing over $7 million.
Net leverage improved to 4.4x at quarter-end, down 0.5 turns from Q1, reflecting ongoing debt paydown efforts.
Scripps Networks revenue was $206 million, down 1.4% year-over-year, with connected TV revenue up 57%, and segment profit margin improved to 27% from 18% in Q2 2024 due to significant expense reductions.
Second quarter earnings per share was a loss of $0.59, impacted by $38 million in financing transaction costs, a $31 million gain on asset sale, and preferred stock dividend reducing EPS by $0.18.
SSP closed a $750 million senior secured second-lien notes placement, refinancing and extending maturities on $1.7 billion of debt, reducing near-term debt maturities and increasing cost of capital by just over 1%.
Dafinchi