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In Q4 2025, it achieved its first quarterly GAAP profit, driven by record revenues and a significant expansion in adjusted EBITDA margin to 18%.
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The functionality is powered by a dataset of more than 1 billion unique customer interactions, providing a structural competitive advantage in identifying complex fraud patterns.
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International markets are outpacing domestic growth, with non-US regions growing 22% year over year, led by strong performance in APAC and LATAM.
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The remittance and payments vertical emerged as the primary growth engine, expanding 90% by 2025 due to improved models for high-frequency, high-risk transactions.
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Management attributed the improved retention (NDR increased to 105%) to the successful multi-product strategy, with a 50% increase in merchants using more than one product.
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The internal adoption of AI acted as a force multiplier for engineering, doubling ticket completion rates and allowing for faster implementation of merchant-specific features.
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Strategic focus shifted to prioritizing gross profit dollar growth over top-line revenue to better reflect the value of high-margin non-guaranteed products.
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2026 revenue guidance of $372 million to $384 million assumes a stable macro environment and net dollar holding rates compared to 2025.
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Management expects non-GAAP gross profit growth to accelerate to 7% to 12%, reflecting continued model optimization and scaling of new business partners.
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Free cash flow is expected to grow at least 20% to nearly $40 million, supporting a $75 million share repurchase authorization.
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The 2026 adjusted EBITDA margin target of 8% includes a significant 400 basis point headwind caused by the appreciation of the Israeli shekel.
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The strategic investment will focus on agentic business solutions, providing risk intelligence layers for both business core AI assistants and general purpose LLM checkouts.
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A negative impact of approximately $14 million to 2026 adjusted EBITDA was recognized due to FX headwinds, particularly the strengthening of the Israeli shekel against the US dollar.
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Same-store sales in the high-end fashion and sneaker sub-verticals noted continued pressure, although some stabilization was seen in the second half of 2025.
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It has been reported that 30% to 40% of essential model features are missing when customers transact through general-purpose LLMs, necessitating the development of new ‘agent’ identity signals.
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The 2022 business group continues to underpin the broader portfolio, although management expects gradual improvement as the model matures.
