Strategic Execution and Market Dynamics

• Achieved first-ever quarter of GAAP profitability in Q4 2025, driven by record revenues and significant expansion in adjusted EBITDA margins to 18%.

• Performance was bolstered by a data moat of over 1 billion unique customer interactions, providing a structural competitive advantage in identifying complex fraud patterns.

• International markets outpaced domestic growth, with non-U.S. regions growing 22% year-over-year, led by strong performance in APAC and LATAM.

• The Money Transfer and Payments vertical emerged as a primary growth engine, expanding 90% in 2025 due to refined models for high-frequency, high-risk transactions.

• Management attributed improved retention (NDR increased to 105%) to a successful multi-product strategy, with a 50% increase in merchants using more than one product.

• Internal AI adoption acted as a force multiplier for engineering, doubling ticket completion rates and allowing for faster deployment of merchant-specific features.

• Strategic focus has shifted toward prioritizing gross profit dollar growth over top-line revenue to better reflect the value of high-margin non-guarantee products.

2026 Outlook and Strategic Priorities

• 2026 revenue guidance of $372 million to $384 million assumes a stable macro environment and consistent net dollar retention rates relative to 2025.

• Management expects non-GAAP gross profit growth to accelerate to 7% to 12%, reflecting continued model optimization and the scaling of newer merchant cohorts.

• Free cash flow is projected to grow at least 20% to approximately $40 million, supporting a new $75 million share repurchase authorization.

• The 2026 adjusted EBITDA margin target of 8% includes a significant 400 basis point headwind caused by the appreciation of the Israeli shekel.

• Strategic investment will focus on 'agentic commerce' solutions, providing risk intelligence layers for both merchant-native AI assistants and general-purpose LLM checkouts.

Operational Risks and Structural Adjustments

• Identified an approximate $14 million negative impact to 2026 adjusted EBITDA due to FX headwinds, specifically the strengthening of the Israeli shekel against the U.S. dollar.

• Noted continued same-store sales pressure in high-end fashion and sneaker sub-verticals, though some stabilization was observed in the second half of 2025.

• Reported that 30% to 40% of essential model features are lost when consumers transact through general-purpose LLMs, necessitating the development of new 'agentic' identity signals.

• The 2022 merchant cohort continues to underperform the broader portfolio, though management expects gradual improvement as these models mature.