Recent News
On August 18, 2025 the company increased its board size and appointed Mark Partin as a director, effective the same date, per the Form 8‑K. On August 28, 2025 management announced a presentation at Citi’s Global TMT Conference scheduled for September 4, 2025. On September 9, 2025 the company announced an Investor Day for September 23, 2025; materials and a webcast accompanied the event on September 23.
Technical Analysis
ADX at 13.35 signals no trend and supports a consolidation bias; the lack of a strong directional trend magnifies the impact of overvaluation on price pressure.
DI+ shows a peak & reversal, which signals waning upside momentum; DI- shows a peak & reversal, which signals easing selling pressure. Together these readings imply reduced directional conviction and favor sideways-to-lower price action against the current valuation.
MACD shows a peak & reversal, indicating bearish momentum with MACD at -2.44. The MACD sits above its signal line (-2.58), producing a bullish crossover that may generate a short-lived bounce, but the negative MACD level keeps the heavier momentum bias to the downside relative to fair value.
MRO sits at -22.71 with a dip & reversal, which places the market price materially below the model target and indicates upward mean-reversion potential; that potential must contend with the over‑valued headline and weak momentum signals.
RSI at 41.74 with a peak & reversal points toward bearish pressure rather than bullish continuation; the reading aligns with the EMA and moving-average spreads that follow.
Price trades below short- and medium-term averages: close $104.14 below the 20-day average $107.20, below the 26-day EMA $109.15 and the 50-day average $113.49, while the 200-day average sits at $141.58. The 12-day EMA shows a decreasing trend, reinforcing short-term downside bias into the resistance band formed by the 20-day and 26-day averages.
Bollinger structure places the close just beneath the lower 1x standard-deviation band at $104.76 and above the lower 2x band at $102.31, implying limited immediate downside before support near the lower band; average volumes sit near the 10-day mean, suggesting no surge in conviction from buyers or sellers during the recent move.
Ichimoku components (Tenkan $108.42; Kijun $110.42; Senkou A $115.93; Senkou B $124.83) position the cloud above price and act as layered resistance, magnifying the short-term technical barrier to recovery given the present valuation level.
Fundamental Analysis
Revenue reached $187.4M for the period ending 2025-06-30, with YoY revenue growth at 19.90% and quarterly revenue growth at -48.24% QoQ. Recurring revenue growth figures appeared in the company releases for the quarter but revenue growth dynamics show meaningful seasonality across periods.
Operating income (EBIT) measures $26,470,000 and operating margin stands at 14.13%, which trails the industry peer mean of 29.30% and the industry peer median of 48.39%. Operating margin fell -1.20% QoQ and declined -6.35% YoY, indicating margin compression versus the prior year baseline.
Net income totaled $19,733,000 and EPS registered $1.00 versus an estimate of $0.91, producing an EPS surprise of +9.9% relative to consensus. Free cash flow amounted to $25,658,000 with free cash flow yield at 0.54%, below the industry peer mean of 1.56%, though free cash flow increased YoY by 57.27%.
Return metrics read modest: return on equity 2.08% and return on assets 1.77%, both below typical software peer averages, while interest coverage exceeds 20x and net debt remains minimal (total debt $10,798,000), providing balance-sheet flexibility despite lower profitability ratios.
Valuation multiples sit at elevated levels versus fundamentals: trailing P/E at 139.84 and forward P/E near 144.60, while price-to-book stands at 4.99 versus an industry peer mean of 8.88 and median of 8.61. Price-to-sales measures 25.30. The forward revenue estimate sits at $87.80M in the near term per the model inputs. WMDST values the stock as over-valued based on the combination of stretched multiples and the company’s current margin and return profile.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-07-30 |
| NEXT REPORT DATE: | 2025-10-23 |
| CASH FLOW | Begin Period Cash Flow | $ 94.9 M |
| Operating Cash Flow | $ 32.3 M | |
| Capital Expenditures | $ -6.67 M | |
| Change In Working Capital | $ -17.81 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 12.7 M | |
| End Period Cash Flow | $ 107.6 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 187.4 M | |
| Forward Revenue | $ 87.8 M | |
| COSTS | ||
| Cost Of Revenue | $ 59.8 M | |
| Depreciation | $ 5.0 M | |
| Depreciation and Amortization | $ 14.5 M | |
| Research and Development | $ 17.3 M | |
| Total Operating Expenses | $ 160.9 M | |
| PROFITABILITY | ||
| Gross Profit | $ 127.6 M | |
| EBITDA | $ 41.0 M | |
| EBIT | $ 26.5 M | |
| Operating Income | $ 26.5 M | |
| Interest Income | — | |
| Interest Expense | — | |
| Net Interest Income | — | |
| Income Before Tax | $ 27.2 M | |
| Tax Provision | $ 7.5 M | |
| Tax Rate | 27.567 % | |
| Net Income | $ 19.7 M | |
| Net Income From Continuing Operations | $ 19.7 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.91 | |
| EPS Actual | $ 1.00 | |
| EPS Difference | $ 0.09 | |
| EPS Surprise | 9.89 % | |
| Forward EPS | $ 0.97 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.1 B | |
| Intangible Assets | $ 780.6 M | |
| Net Tangible Assets | $ 169.2 M | |
| Total Current Assets | $ 269.4 M | |
| Cash and Short-Term Investments | $ 107.6 M | |
| Cash | $ 107.6 M | |
| Net Receivables | $ 67.5 M | |
| Inventory | — | |
| Long-Term Investments | $ 1.8 M | |
| LIABILITIES | ||
| Accounts Payable | $ 11.6 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 148.0 M | |
| Net Debt | — | |
| Total Debt | $ 10.8 M | |
| Total Liabilities | $ 171.3 M | |
| EQUITY | ||
| Total Equity | $ 949.8 M | |
| Retained Earnings | $ 378.0 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 24.99 | |
| Shares Outstanding | 37.927 M | |
| Revenue Per-Share | $ 4.93 | |
| VALUATION | Market Capitalization | $ 4.7 B |
| Enterprise Value | $ 4.6 B | |
| Enterprise Multiple | 113.377 | |
| Enterprise Multiple QoQ | -16.414 % | |
| Enterprise Multiple YoY | -45.668 % | |
| Enterprise Multiple IPRWA | high: 887.98 mean: 126.334 SPSC: 113.377 median: 44.04 low: -352.026 |
|
| EV/R | 24.787 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.18 | |
| Asset To Liability | 6.544 | |
| Debt To Capital | 0.011 | |
| Debt To Assets | 0.01 | |
| Debt To Assets QoQ | -12.929 % | |
| Debt To Assets YoY | -10.419 % | |
| Debt To Assets IPRWA | high: 0.9 median: 0.194 mean: 0.166 SPSC: 0.01 low: 0.004 |
|
| Debt To Equity | 0.011 | |
| Debt To Equity QoQ | -14.64 % | |
| Debt To Equity YoY | -12.94 % | |
| Debt To Equity IPRWA | high: 0.537 median: 0.352 mean: 0.299 SPSC: 0.011 low: 0.005 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 4.993 | |
| Price To Book QoQ | -15.492 % | |
| Price To Book YoY | -50.423 % | |
| Price To Book IPRWA | high: 13.162 mean: 8.877 median: 8.605 SPSC: 4.993 low: 0.647 |
|
| Price To Earnings (P/E) | 139.843 | |
| Price To Earnings QoQ | -2.324 % | |
| Price To Earnings YoY | -41.429 % | |
| Price To Earnings IPRWA | high: 366.06 SPSC: 139.843 mean: 111.062 median: 53.265 low: -119.25 |
|
| PE/G Ratio | — | |
| Price To Sales (P/S) | 25.303 | |
| Price To Sales QoQ | -15.565 % | |
| Price To Sales YoY | -45.135 % | |
| Price To Sales IPRWA | high: 55.452 mean: 29.028 SPSC: 25.303 median: 22.334 low: 1.118 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 144.598 | |
| Forward PE/G | — | |
| Forward P/S | 53.905 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 0.614 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.168 | |
| Asset Turnover Ratio QoQ | -0.937 % | |
| Asset Turnover Ratio YoY | -7.303 % | |
| Asset Turnover Ratio IPRWA | high: 0.375 median: 0.227 mean: 0.192 SPSC: 0.168 low: 0.017 |
|
| Receivables Turnover | 2.863 | |
| Receivables Turnover Ratio QoQ | -8.982 % | |
| Receivables Turnover Ratio YoY | 0.226 % | |
| Receivables Turnover Ratio IPRWA | high: 4.025 SPSC: 2.863 mean: 1.455 median: 1.352 low: 0.22 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 31.87 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.544 | |
| CapEx To Revenue | -0.036 | |
| CapEx To Depreciation | -1.335 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 949.8 M | |
| Net Invested Capital | $ 949.8 M | |
| Invested Capital | $ 949.8 M | |
| Net Tangible Assets | $ 169.2 M | |
| Net Working Capital | $ 121.4 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.727 | |
| Current Ratio | 1.821 | |
| Current Ratio QoQ | 10.909 % | |
| Current Ratio YoY | -42.493 % | |
| Current Ratio IPRWA | high: 6.752 SPSC: 1.821 mean: 1.631 median: 1.447 low: 0.894 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 0.264 | |
| Cost Of Debt | 8.016 % | |
| Interest Coverage Ratio | 20.745 | |
| Interest Coverage Ratio QoQ | 1.98 % | |
| Interest Coverage Ratio YoY | 14.267 % | |
| Interest Coverage Ratio IPRWA | high: 220.0 median: 62.533 mean: 38.569 SPSC: 20.745 low: -23.112 |
|
| Operating Cash Flow Ratio | 0.206 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 18.325 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.087 % | |
| Revenue Growth | 3.223 % | |
| Revenue Growth QoQ | -48.242 % | |
| Revenue Growth YoY | 19.903 % | |
| Revenue Growth IPRWA | high: 20.331 % mean: 4.94 % median: 3.532 % SPSC: 3.223 % low: 0.527 % |
|
| Earnings Growth | 0.0 % | |
| Earnings Growth QoQ | -100.0 % | |
| Earnings Growth YoY | -100.0 % | |
| Earnings Growth IPRWA | high: 23.034 % median: 16.146 % mean: 7.89 % SPSC: 0.0 % low: -150.0 % |
|
| MARGINS | ||
| Gross Margin | 68.076 % | |
| Gross Margin QoQ | -0.838 % | |
| Gross Margin YoY | 2.938 % | |
| Gross Margin IPRWA | high: 94.916 % median: 84.601 % mean: 80.179 % SPSC: 68.076 % low: 42.327 % |
|
| EBIT Margin | 14.125 % | |
| EBIT Margin QoQ | -1.203 % | |
| EBIT Margin YoY | -6.345 % | |
| EBIT Margin IPRWA | high: 48.388 % median: 48.388 % mean: 29.297 % SPSC: 14.125 % low: -30.992 % |
|
| Return On Sales (ROS) | 14.125 % | |
| Return On Sales QoQ | -1.203 % | |
| Return On Sales YoY | -6.345 % | |
| Return On Sales IPRWA | high: 48.388 % median: 48.388 % mean: 29.009 % SPSC: 14.125 % low: -80.448 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 25.7 M | |
| Free Cash Flow Yield | 0.541 % | |
| Free Cash Flow Yield QoQ | -13.023 % | |
| Free Cash Flow Yield YoY | 57.267 % | |
| Free Cash Flow Yield IPRWA | high: 7.36 % median: 2.518 % mean: 1.563 % SPSC: 0.541 % low: -1.991 % |
|
| Free Cash Growth | -24.163 % | |
| Free Cash Growth QoQ | 1511.941 % | |
| Free Cash Growth YoY | 19.993 % | |
| Free Cash Growth IPRWA | high: 320.039 % median: 320.039 % mean: 146.255 % SPSC: -24.163 % low: -118.823 % |
|
| Free Cash To Net Income | 1.3 | |
| Cash Flow Margin | 16.254 % | |
| Cash Flow To Earnings | 1.544 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 1.77 % | |
| Return On Assets QoQ | -14.658 % | |
| Return On Assets YoY | -16.823 % | |
| Return On Assets IPRWA | high: 8.261 % median: 8.261 % mean: 4.735 % SPSC: 1.77 % low: -13.869 % |
|
| Return On Capital Employed (ROCE) | 2.72 % | |
| Return On Equity (ROE) | 0.021 | |
| Return On Equity QoQ | -13.776 % | |
| Return On Equity YoY | -18.923 % | |
| Return On Equity IPRWA | high: 0.292 median: 0.14 mean: 0.088 SPSC: 0.021 low: -0.177 |
|
| DuPont ROE | 2.11 % | |
| Return On Invested Capital (ROIC) | 2.019 % | |
| Return On Invested Capital QoQ | -9.095 % | |
| Return On Invested Capital YoY | -134.548 % | |
| Return On Invested Capital IPRWA | high: 10.885 % median: 10.885 % mean: 6.239 % SPSC: 2.019 % low: -15.042 % |
|