Casey: sign one-year versus multi-year commitments than in prior years. This impacts both RPO as well as CRPO. Let me explain why. If you went back to the end of 2024, there was approximately $100 million of CRPO on our books related to commitments that extended beyond 2025. As we enter 2026, this amount is $85 million. This $15 million difference reflects the lower average duration of our contract portfolio entering the year and is a drag to CRPL growth. Before providing guidance on Q1 and the full year, I'd like to take a moment to frame where we believe the business is as we enter 2026. We made significant progress in 2025 across each of our strategic priorities and are confident we have set a solid foundation for the business to return to growth in the future. However, as Kevin mentioned, based on the timing of when these changes will be implemented, we will not see the full impact of these investments in 2026. This is reflected in our guidance for the year. Now moving to guidance for Q1, we expect total Q1 revenue of $54 to $56 million, a revenue decrease of 5% to 9% year over year compared to Q1 2025. The sequential decline in revenue reflects that the improvement in renewal rates in Q4 only modestly improved year over year. As a reminder, a substantial portion of our yearly renewals occur in this timeframe. Also keep in mind that there will be a partial period benefit to growth this quarter from the data partnership that began generating revenue during Q1-25. Taking these factors into account, in Q1, we expect adjusted operating income of $9.5 to $10.5 million, adjusted EBITDA of $12 to $13 million, or 22 to 23% adjusted EBITDA margin in Q1. and adjusted net income of $4 to $5 million, or approximately $0.03 per diluted share on 143.2 million weighted average shares outstanding. For the full year 2026, we expect revenue of $220 to $226 million for a 6% to 9% decline year over year. For the full year, we expect total revenue dollars to be roughly flat sequentially through the year with a modest uptick in the second half relative to the first half. and we've continued to proactively manage our cost base while making targeted investments in growth areas. From a non-GAAP profitability perspective, the largely fixed nature of our costs mean that most of the revenue decrease will flow through and create negative operating leverage. We expect sales and marketing expense of 32 to 33% of revenue, development expense of 12 to 13% of revenue, and G&A expense of 12 to 13% of revenue. We expect development expense to be modestly higher year over year as we make targeted investments for growth, while we expect to see sales and marketing as well as G&A expense reduced year over year as we drive efficiencies across support functions in each area. Translating that into dollars, in 2026, we expect adjusted operating income of $41.5 to $46.5 million, adjusted EBITDA of $53 to $58 million for a full year margin of 24 to 26%, This guide reflects our ongoing commitment to maintaining strong margins while investing in our key growth areas. The decline from 2025 levels is due to a combination of ongoing pressure on revenue and more than a point of impact from the one-time expense credits we recognized in the second and third quarter of 2025 that will not repeat this year. Adjusted net income is expected to be between $21 to $26 million, and earnings per share are expected to be 14 to 17 cents on 145.4 million weighted average shares outstanding. And while we don't explicitly guide on unlevered free cash flow, it's important to note that we do expect to see adjusted EBITDA to unlevered free cash flow conversion improving by several points in 2026 relative to 2025 given lower planned cap expense. As we wrap up, I'd like to reiterate that while we continue to face top-line pressures, We remain committed to non-GAAP profitability and maintaining a solid margin profile while balancing investments for a return to growth in the future. We are confident that we have the right strategy and are committed to continuing to make progress against our key initiatives that over time we expect will improve customer retention, return definitive growth, and drive long-term shareholder value. And with that, I would like to open it up for questions.
Operator: If you'd like to ask a question, please press star 1 on your phone now, and you'll be placed into the queue on the order receipt. Again, star 1 for a question, and we'll pause briefly to form our queue. Our first question today comes from Craig Hettenbach of Morgan Stanley.
Jay: Hi, this is Jay. I'm for Craig Hettenbach. Thanks for taking my question. I was just wondering, can you provide a quick update on the demand environment across your three end markets? And then any other common themes you can share from the large cohort of renewals from the December and January?
Kevin Waterworth: Sure. So, let me start with the integration strategy and the renewal impact that we're seeing come through our focus on churn improvement. So, as we've noted previously, A significant portion of our retention trends were impacted by the industry-wide claims disruption, and we're confident that the actions that we took to remediate the claims data throughout the year will drive improvement in our performance as we move into 26. And as we look at the business from a cohort perspective, the first cohort of renewals, excluding the first quarter of 24, where the disruption occurred, was posted this last quarter in Q4. And that performance on a business-sold post-Q1 24 basis and up for renewal through 2025 shows about a 200 basis points improvement over the previous comparison quarters, even extending back to 22. So this indicates not only is our strategy focused on data quality, integrations, and improved customer experience, that that's working, we now are very confident that it will continue to build in 2026, and it gives us support for confidence in our plans.
Casey: And the only other component that I would layer on there is that we did see, as I mentioned, improvement in our renewal rates in Q4 year over year. They were modest. And what we're seeing in January is fully incorporated into our 2026 guide. more broadly in the demand environment. No significant change, but certainly a couple of green shoots that we're continuing to monitor. You know, we started to see sales cycles condense, as I think Kevin mentioned earlier in the prepared remarks. So those are just kind of some of the encouraging signs that I think are pairing a little bit of maybe some benefit in terms of what we're starting to monitor from a macro perspective, as well as paired with some of our stronger own sales execution.
Kevin Waterworth: And then maybe one other data point which I think would be helpful is we have been focused on integrations as we know that integrated customers will renew at a higher rate than those that are not. I mentioned that in the prepared remarks. And in Q4, we added over 60 integrated customers. And to give you kind of perspective on that, we added 160 for the full year. So we're seeing the integration focus starting to accelerate. Our commercial teams are – promoting that because it's good for the customer, as well as good for us. And we're very confident that that performance in the fourth quarter, which often is a more difficult quarter to get moving, was actually very positive, especially in comparison to the full year.
Operator: Ryan McDowell- From Neenah, we have Ryan McDowell.
Mad Shea: Mad Shea Hey, thanks. This is Mad Shea on for Ryan. I appreciate you guys taking the questions. Maybe just to start, and then I have a quick follow-up. I would love to just double-click on the last question. Anything you can parse out, I guess, between end markets as you went through the renewal cycle? Any end markets that maybe surprised you, either positive or negative? And then I know in the past, downsells have been more of an issue in the life sciences and pharma end markets. So I would love an update on how that end market in particular is doing.
Casey: Yeah, let me give you a little bit of color as far as what we're seeing in terms of the renewal profile across the business. You know, 2025 for us was a year we were really focused on stabilizing the business, and I think that we were able to, you know, certainly accomplish that across a number of metrics. So if we look at gross dollar retention, gross dollar retention improved two points year over year. that actually was largely driven by our enterprise customers, which are strongly weighted toward the life sciences space, just given that the size of the customers that we tend to deal with within life sciences. So that's an encouraging component there. But exactly as you mentioned, as we've continued to talk about, we were seeing a little bit of the flip side of that in terms of net dollar retention, which declined a couple of points year over year due to the lesser opportunities around upsell and cross-sell opportunities. I think that, you know, as where we stand here today entering 2026, we are in a much stronger position. We've remediated the claims data disruption by bringing on a new data source late in 25. We've got an additional data source ready to come online in the next couple of weeks as well to further add to our claims volumes. And Kevin touched on some of the additional new data that we've added into product as well, plus just more broadly restarting our overall product innovation engine. So we've got a lot more tools in the kit, essentially, as we stand here at the start of 2026 than we did at the start of 2025. And that gives us all the confidence in being able to continue to build upon the stabilization in the growth dollar retention and start to build back that net dollar retention improvement into 2026.
Mad Shea: Okay, I appreciate that color. I guess maybe if we think about the inputs to the growth outlook for 2026, I know understanding churn is still a topic, but if I assume customer count declines and call it the 6% to 7% range like it did in 2025, To get to the midpoint of the 2026 guidance, I have to then assume year-over-year declines in revenue per customer. And despite the downsell pressure you guys have experienced in the last year or two, you've been able to consistently grow ARPU through that headwind. So maybe just help us reconcile that. Is there more churn in store for 2026 than 2025? Or is it more so that downsells have finally reached the point where we should start to expect ARPU declines? Thanks.
Casey: I think that there's an element here of one, over the last couple of years, we've continued to put more focus on our larger enterprise accounts. I think that that is still very much aligned to our strategy, but there's also an element here when you think about the mix of our business. Diversified and provider are smaller than life sciences accounts. We are actually growing in diversified and provider, both of those printed growth in Q4. So, we've got 60 percent of the business that has returned to growth, which is really encouraging for us. So, I think what you're capturing there is less of a churn issue and more of just a business mix element of the diversified and provider pieces of the business, you know, returning to growth and us continuing to pick up and add new customers there that do come in typically at a lower dollar value than, you know, some of the larger life sciences clients. Male Speaker Okay.
Mad Shea: Got it. Thanks, Casey.
Operator: Next, we'll hear from Brian Peterson of Raymond James.
Brian Peterson: Hey, guys. Thanks for taking my question. So maybe to start it on AI, I wanted to understand how much of your customer conversations are impacted by AI and what you guys would be able to deliver through your data assets. But also, I can see scenarios where AI might be distracting or capturing share of budget, maybe away from traditional vendors. I'd love to understand how you're thinking about the net impact of AI so far, at least through 2025?
Kevin Waterworth: Yeah, so I think the helpful aspect of our solution set and the type of use cases that we sell into, it's very healthcare-specific workflow. These are purpose-built solutions, and the data is collected in a way to be delivered in these purpose-built workflows. And it's around sales and marketing intelligence for contact-level targeting and territory design It's population and conditioning modeling. It needs to address market sizing, medical affairs planning, even key opinion leader mapping related to influence patterns and how that evolves over time, or automating risk related to things like legal affairs. So we've got the type of use cases that we're solving aren't really optional, right? They're very much around commercial execution, product or strategy. And so that's sort of the base layer. Then you also look at it from, which I mentioned in my prepared remarks, which was, look, AI modeling is only as good as the data it can mine, and we know that our differentiated data, which is focused on and founded on our best-in-class reference and affiliation data set, gives us a clear advantage. And so the conversations that we're having, it's more around how do we apply and what can we do to apply the... and harness AI as it relates to the existing use cases and workflow and healthcare suite workflows, which is why we believe that is a competitive advantage in a tailwind as opposed to a headwind for us today.
Brian Peterson: Got it. Thanks, Kevin. And I appreciate all the comments on the NDR and the customer dynamics. Are you guys able at this point to say when you think NDR may actually hit a bottom? It's good that you've seen the gross revenue retention improve. Just curious when that KPI should influx. Thanks, guys.
Casey: It's fully our expectation that we're able to improve NDR within 2026. So we view 2025 as the bottom. As I mentioned, I think that there's a lot of work that we did in 25 that really positioned us to be starting 2026 on a stronger footing from a product innovation standpoint, as well as the work we've done to add additional data, remediate the claims data issue, as well as enhance some of the components that we have within our crown jewel, our reference and affiliation data as well.
Kevin Waterworth: And I think, you know, I'm sorry, I was going to add on, if it's okay, maybe the contextual expertise and why we see the tailwind with AI, especially as it relates to that, is as we're bringing the Gen I layer to what is already a highly effective front-end platform, that's going to allow us to it sort of democratizes the use today, where while the platforms are very powerful, they do require a certain level of expertise and super users to access. And so, with what we're doing this quarter, that's going to allow more users to have more access to unlock more value. In fact, that we are value-based pricing anyway, not seat-based. Unlocking more value is going to be really helpful, especially as we focus on net dollar retention as addition to gross dollar retention. because that will unlock more cross-sell, up-sell, and value unlock as we delight our customers with more value from the products and the platforms that we already have.
Brian Peterson: Thanks, guys.
Operator: Our next question comes from Jared Haas of William Blair.
Jared Haas: Hey, guys. Thanks for taking the question. Maybe I'll follow up on that point related to the NDR, and I appreciate... all the underlying drivers that give you confidence that 2025 can mark the bottom here. I guess I just wanted to contextualize, because obviously we've been thinking a lot about some of the product development and innovation initiatives to help drive that. But just to put a fine point on it, I'm curious if you guys are planning any refinement in your go-to-market, specifically targeted towards the sales motion to drive better upsells as well, in addition to the product innovation?
Kevin Waterworth: Yes, so we've got really, I would think about it in terms of five sort of prongs in that area. You've got the confidence coming from several key points. Number one, we continue to have extremely valuable differentiated data that improves our customers' business performance. The second thing that we've got is we're investing to develop purpose-built solutions on top of our purpose-built solutions with AI, which will make it easier for the customers to actually value and create value from our data. The third is We have already completed our go-to-market and customer success integration, which allows us to impact the business positively with higher rent rates, shorter sales cycles, and with a consolidated commercial organization, we're seeing greater alignment, which is showing up in things like radically improved implementation timelines that has already decreased by over 25% year-to-date. And with the extending our AI investments into product, The data and end user development within our 2026 product roadmap, which is already in there inside the financials, which Casey's already taking you through, that accelerated investment is going to start to produce real tangible outcomes as we bring these innovations to market starting later this quarter. And finally, we talked about this about a year ago or so, a little bit more than a year ago, on our integration strategy, which we know is having a positive impact. You can see I mentioned the We had 60 integrations as opposed to 160 for the full year. And when we look at the retention rates from integrated customers, it's only going up. And we can talk a little bit more about the expansion of the integrations, but I don't think we should underestimate the value that we have as being an agnostic platform where we are able to integrate with the customer systems of insight and systems of record, regardless of what those are. And often they use multiple integrations. ways, because that's how we start to see the sickness come in. So whether they're integrating it through lake-to-lake, whether they need direct API integration, or whether they're still accessing, and oftentimes they do directly through our state-of-the-art, soon-to-be AI-enabled workflow products.
Jared Haas: Gotcha. Okay, that's helpful. And then I guess as my follow-up, so you mentioned the fall expansion pack and some of the big updates. You know, you brought on the new Plains data source in the fourth quarter as well. When you have big product refreshes or updates like that, I'm just curious how quickly you're able to communicate those upgraded features to the market. I'm wondering how much that factored into the year-end renewal discussions in the December-January timeframe. And I guess the specific point around this is I'm trying to think about how much of that is sort of more incremental tailwind in 2026 selling discussions.
Casey: That's an excellent question. So, given the timing of the fall expansion pack, that really came in at the start of Q4. And most of our customers have already kind of made most of their renewal decisions largely like 90 days out. So I actually don't think that we're seeing the impact from that and the benefit from that showing up in the Q4 renewals just yet. I think we're going to learn about the extent that that's going to boost renewals a lot more here in Q1 and Q2. So I think it's how that relates in terms of the guidance we've put together and put out is I think that the guidance has seen some modest improvement in renewal rates, but I think that there's certainly still opportunity that we'll continue to monitor based on how quickly we see additional uplift and the impact on renewals. But it's not just the renewals. It's also now we've got – we did a really good job historically of selling claims as an upsell motion and a cross-sell motion into our customers historically. We didn't really do that last year because we needed to address the data disruption. Now that that's been addressed, that opens up that avenue for us as well. So that'll certainly be a boost to us in 26. There's a component of it baked into our 26 guide, and we're continuing to kind of monitor results for more potential upside, and we'll talk about that more as the year goes on.
Operator: Okay, perfect. That's really helpful. Once again, everyone, press star 1 for questions.
Operator: Next up, we have George Hill of Deutsche Bank.
George Hill: Hey, good afternoon, guys, and thanks for taking the questions. I've just got two quick ones. Casey, you talked about the NDR approving or bottoming, I guess, in 26. I guess I don't know if you're willing to talk about like order of magnitude as you think about the recovery, like if we're modeling that going forward, kind of what does that look like? And Kevin, on the claims data, are you able to talk about like what amount of enterprise revenue Does the claims data product, to what amount of revenue does claims data underpin various product revenue? And is the disruption there enough to consider that product significantly impaired? Or is there a resale process around that, like a reintroduction process as it relates to the claims data product? Are you able to just kind of go back to market with the patches that you guys have made? I understand that's a clumsy question. I apologize.
Kevin Waterworth: Well, no, I mean, I get where the intent of the question is. So maybe what I'll do is I'll start with sort of the philosophical and the rationale, and then maybe Casey can kind of quantify it to the question on both NDR as well as how do you size that. So the claims data, it's really just a very simple issue that we faced, and it depends on the customer because it wasn't universally spread evenly across the countries. So when you have, say, 30% of records that suddenly evaporate from the market, and if you've entitled your customers to expect a certain number of records, and now there's 30% less, regardless of the reason, there's going to be pressure on right-sizing and down-sell pressure when you renew, or they want to be made right. remediating the claims data was twofold. One, we needed to get the actual counts back up to historical or better than historical averages, which is where we are now. We're above historical averages. At the same time, it gave us the opportunity to increase the quality. Because the one thing that I definitely, and this relates to all of our data and all of our products, the single biggest reason and the number one factor that our customers report why they select definitive is because they rely on us for accuracy and quality. Our data needs to be as pristine and accurate as possible. So it's not just, it wasn't a simple answer. So now that you've gotten claims data that's been cross-sold very effectively in earlier years, that now creates a dissatisfaction, even if the revenue component was less, it starts to impair other companies that may, or other customers that may have acquired that as well. So remediating the volume and the quality at the same time was very important, and we are claiming job complete on that, and we feel very good about it, and I think it's starting to show up in the green shoots and the records going forward. As far as the question on how that impacts NDR and how you would shirt-size that, Casey, I don't know if you want to.
Casey: Yeah. I think as far as what's assumed in our guide around NDR is a modest improvement, a couple of points. I think that, you know, again, there'll be more that we'll monitor as we go through the year to be able to show if we're on track for that or if we've got the opportunity to do better. But we're confident in being able to deliver a couple of points of improvement on an NDR basis for 26.
Operator: Okay. Thank you. Next, we have Jeff Garoff, Stevens Incorporated.
Jeff Garoff: Yeah, good afternoon. Thanks for taking the question. I want to ask about renewals and sales activity in the life science and market. And you mentioned positive activity in December year over year. But I want to specifically combine that with the idea that we've heard from others, maybe some life science companies were distracted around December as they negotiated most favored nations. pricing agreements with the administration. So curious to the extent you saw that and what you could tell us about pipeline development here in the first 50 days or so of 2026 as we get past that year-end 2025 period and start to look forward a little bit more as we've heard there's more budget certainty for these large pharma companies.
Casey: Yeah, so let me start here around some of the dynamics we've seen in the life sciences space. Again, I don't think there's been a ton of change from the elements that we talked about all year. In Q4, there still was pressure around lack of upsell activity. But we talked about growth dollar retention improving about 200 BIPs. at a total company level, that's a pretty consistent level within life sciences as well. So that stabilization and that improvement there I think is really important and is something that we've been very focused on really kind of stabilizing that component of the business. As I mentioned earlier, when we got diversified and provider back to growth, now it's what's it taking, what's that curve and really the slope of that curve look like around life sciences and That's what we're really focused around kind of executing against while continuing to nurture the growth that we're seeing within diversified in the provider space. But I can't say there's really been too significant of changes. I think we're still very highly engaged. We've got a lot of our relationships in the life sciences space are very longstanding. In fact, if you look at our logo turn rates, our logo retention rates are extremely high. in the life sciences space. And that's just an area that I think has been quite consistent for us for a long time. These are customers that have been with us for a long period of time. They value high-quality data. And we really just have these downsell pressures throughout, you know, 24 and 25 as a result of claims data disruption. And we feel really good about where we are today and being able to build back the revenue within these accounts over time. And that, for us, is really just the key component thereof. you know, what is the slope of the life sciences recovery look like? And from a guidance perspective, we're being pretty prudent on the assumptions within the life sciences space until we get a couple more green shoots under our belt.
Jeff Garoff: Great. I appreciate that. And one more quick one for me, just the discussion of a return to organic innovation spend. wanted to see if there's anything you can add more around the focus areas there and around the timing of product releases and eventual return on that investment. You mentioned one release later this quarter, so maybe help us just a little bit more with the cadence of other releases from there. Thanks again.
Kevin Waterworth: Yeah, as we're looking at our kind of compute capacity management and how we're deploying our resources, You know, we're balancing the internal deployment of resources by focusing our engineering or problem-solving teams primarily and our AI-enabled product roadmap. And we're doing so with, if I was going to give you the, you know, the guidance on there, I would think of it in terms of Q2 is when we're really focusing on getting this into a more of a GA cycle, even though we are launching certain beta programs currently and in this quarter. But I would look at it from a Q2 perspective.
Operator: We have no further questions at this time. That concludes our meeting today.
Operator: Thanks, everyone, for joining. The host has ended this call. Goodbye.
