🟢 +240% Bull Potential - Gross Margin +480bps, Down 39%, 19x Earnings
1,200 financial institutions run on this platform. The cloud migration is finished and the margin expansion has started. Adjusted EBITDA up 37%. The stock is down 39% over twelve months.
Most software companies talk about operating leverage. This one just proved it.
For years the business carried the cost of running two things at once: a legacy on-premise infrastructure for older customers, and a cloud platform for everyone else. That is expensive. It kept gross margins in the fifties, well below where a subscription software business should operate, and it capped profitability no matter how well the company sold.
The cloud migration completed earlier in 2026. Q2 2026 is the first clean quarter that shows what the business actually looks like underneath.
Non-GAAP gross margin jumped to 62.3% from 57.5%. Adjusted EBITDA margin went to 28.6% from 23.5%. Adjusted EBITDA grew 37% while revenue grew 13%. GAAP operating margin went to 13.4% from 5%.
That gap between 13% revenue growth and 37% EBITDA growth is the entire thesis. Meanwhile the stock is down roughly 39% over the past year.
📈 Q2 2026 Revenue: $219.8M - up 12.6% YoY, beat consensus
💰 Adjusted EBITDA: $62.8M - up 37%, margin 28.6% from 23.5%
📊 Non-GAAP gross margin: 62.3% - up 480 basis points
🔁 Subscription ARR: $825.5M - up 15%, now 83% of revenue
📋 Backlog: $2.8B - up 17% year over year
🏦 1,200+ financial institutions - 27.8 million registered users
🎯 FY2030 framework: ~65% gross margin, ~35% EBITDA margin - management’s own target
🔻 Stock down ~39% - roughly 19x FY2026 earnings
Mini traffic light:
Margin inflection 🟢 - Cloud migration complete; 480bps gross margin expansion in one year; EBITDA growing nearly 3x faster than revenue
Revenue quality 🟢 - Subscription is 83% of revenue and growing 15%; $2.8B backlog up 17%; mission-critical software banks do not switch
Capital allocation 🟢 - $350M added to the buyback authorisation, total capacity $375M, executed against a depressed multiple
Growth rate 🟡 - Total revenue growth is 11-13%, and management’s preliminary 2027 subscription guide is lower than 2026, not higher
AI monetisation 🟡 - Q2 Assistant, Q2 Code and the fraud products are early; demand commentary is strong but revenue contribution is not yet proven
👉 Inside the Paid Tile: full company reveal, why these brands price like luxury and grow like tech, the three growth engines explained, condensed 10x checklist, valuation table, Bull/Base/Bear scenarios with EV math, weighted expected return, KPIs to watch.
🔒 PAID TILE
🏷 Company Reveal + How the Business Works
