Oct 29, 2026 earnings call — Software transformation and ActiveDisclosure momentum
Third quarter sales of $185 million matched the high end of guidance.
Revenue $0.2B (est $0.2B) · EPS $1.07 (est $0.84) · Next-quarter revenue outlook $0.2B–$0.2B
Key quotes
"Software solutions sales represented 51.5% of total sales in the quarter as we continue to transform into a software-led company."
"Our third quarter software solutions sales growth continues to be led by the performance of ActiveDisclosure, which grew approximately 24% year-over-year, marking the fifth consecutive quarter of 20% plus growth."
"Free cash flow in the quarter was $85.8 million, $26.6 million higher than the third quarter of 2025."
Analyst Q&A 3
Assumptions for $50M transactional guide, e-delivery
Q (Charles Strauzer · CJS Securities,): Analyst asked what assumptions underlie the $50 million transactional guidance (IPOs, M&A) and for an update on e-delivery and the quarter's additional incentive compensation expense.
A: Management said the Q4 guide is generally in line with the year-over-year improvement so far, noting IPOs were softer in Q3 and M&A was stronger, and the forecast assumes a bit more IPO strength than Q3 with similar M&A. They said final e-delivery regulation is pending, with a phase-in and that software benefits will offset in part the reduction in print and distribution, with more impact toward 2028. On incentive comp, they said accruals are based on full-year expected expense, recorded additional expense due to Q3 strength and Q4 outlook, and quantified the increases versus last year's third quarter: about $3.1 million higher, with $1.7 million in SG&A and the balance in cost of sales, and about $3.7 million higher sequentially than H1 averages.
"As we commented in the prepared remarks, the expectation in the trend towards e-delivery is we'll have benefit on the software side, which will offset in part, not fully, but offset in part the reduction in print and distribution." — David Gardella
ActiveDisclosure growth, private module, ArcFlex timing
Q (Peter Heckmann · D.A. Davidson): Analyst asked what is driving ActiveDisclosure's growth, whether the private company module is contributing, and how ArcFlex and the private company solution expand TAM and when they will add to growth.
A: They said ArcFlex will generate a de minimis amount of revenue this year and is expected to start ramping in 2027, though they have not quantified run rates yet. For ActiveDisclosure, they credited a new product and sales changes, growth in net client count, subscription packages, hybrid services, and migration of some activity (including IPO work) from the traditional platform; private company use is growing and often leads into IPO work and ongoing public-company compliance. They said as they get better estimates on run rates and TAM they will provide more color.
"There's a de minimis amount of revenue that we'll record this year, and that will start to ramp up in 2027, as we said in the prepared remarks." — David Gardella
Industry exposure and Venue product update
Q (Kyle Peterson · Needham): Analyst asked how the firm's capital-markets exposure breaks down by vertical (life sciences, biotech, tech) and for an update on Venue: pipeline, go-to-market, product and revenue outlook.
A: They said they operate across the board and can be more heavily weighted to certain verticals in any quarter, noting their share may be a little bit heavier on the biotech side; a strong IPO market in any vertical would help. On Venue, they said they rolled out Saturn/the new Venue in the fourth quarter of last year, have seen very good sales execution, and recorded just over 7% sales growth in the United States in the quarter; performance was weakest in EMEA, they see opportunity there, and they feel good about the product and go-to-market improvements though more work is needed for those markets.
"If we rolled out Saturn or the new Venue in the fourth quarter of last year and have seen very good sales execution." — David Gardella