Recent News
On April 1, 2026 the company confirmed participation in multiple second-quarter investor conferences, including a May 19, 2026 industry event. On April 21, 2026 Q2 hosted an investor briefing titled “AI Strategy & Architecture,” highlighting architectural priorities and AI positioning for its digital-banking platform.
Technical Analysis
ADX at 14.31 indicates no trending bias across the market; momentum lacks a clear directional force and suggests range behavior rather than a sustained breakout.
Directional indicators show a short-term shift toward selling pressure: DI+ registers 26.57 but shows a peak-and-reversal, which signals bearish directional momentum; DI- registered a dip-and-reversal and has increased to 23.53, which also signals bearish pressure building. Together these shifts point to waning bullish dominance despite the lack of a strong trend.
MACD displays a peak-and-reversal pattern, signaling deteriorating momentum even though the MACD line (0.31) sits slightly above its signal line (0.24); the overall MACD pattern favors loss of upside momentum rather than fresh bullish acceleration.
MRO sits at 8.42 and recently dipped then reversed, indicating the price sits modestly above the regression target and carries a modest downward bias toward the target; the magnitude implies limited near-term excess.
RSI at 45.88 and rising signals rebuilding buying interest but remains below the neutral 50 level, so short-term momentum shows improvement from oversold conditions without turning strongly bullish.
Price sits below several short-term indicators: the 12-day EMA has peaked and reversed and the 20-day average ($50.75) sits above the close ($50.13), while the 50-day average ($49.47) remains below price—technical exposure centers on short-term weakness with intermediate support intact. Bollinger bands place the price near mid-band (lower band $48.86, upper band $52.64), consistent with range-bound action. Ichimoku components place the price above the short-term baseline and above Senkou A ($48.65) but below Senkou B ($57.83), indicating capped upside within the cloud boundary.
Fundamental Analysis
Q2 reported total revenue of $216,506,000 for the period ending 2026-03-31 and delivered net income of $26,639,000; per the report dated 2026-04-29, EPS came in at $0.63 versus an estimate of $0.69, an EPS surprise of -8.70%.
Profitability improved materially: gross margin reached 59.08%, while EBIT margin measured 14.30%. EBIT margin rose roughly 35.18% quarter-over-quarter and improved about 300.42% year-over-year, indicating rapid margin leverage against the prior base. EBIT margin remains below the industry peer mean of 38.69% and below the industry peer median of 48.40%, which highlights room for continued margin convergence if high-margin subscription mix sustains.
Top-line growth showed stability: revenue grew 8.84% year-over-year and expanded 23.12% quarter-over-quarter, reflecting subscription momentum and migration to higher-margin offerings.
Liquidity and capital structure show mixed signals. Cash and short-term investments total $378,891,000 with a cash ratio of 0.67 and a current ratio of 0.93; the current ratio sits below the industry peer mean current ratio of 1.31. Total debt stands at $343,902,000, producing debt-to-equity of 0.56—above the industry peer mean of 0.21—while the interest-coverage ratio of 25.69 confirms ample earnings coverage of interest expense.
Cash generation displayed positive free cash flow of $44,210,000 and a free-cash-flow yield of 1.34%, which sits above the industry peer mean free-cash-flow yield figure provided. Free cash flow has contracted year-over-year, however, with free-cash-growth down 21.88% YoY, underscoring variability in conversion despite positive absolute free cash.
Market multiples reflect growth expectations priced into the equity: trailing P/E at 83.54 and forward P/E around 70.04, while P/S at 15.23 signals premium revenue valuation. Book value per share stands at $9.76 and price-to-book is 5.39, below the industry peer mean price-to-book of 8.60. The current valuation as determined by WMDST classifies the stock as under-valued, balancing premium multiples against improving margins and healthy cash balances.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-03-31 |
| REPORT DATE: | 2026-04-29 |
| NEXT REPORT DATE: | 2026-07-29 |
| CASH FLOW | Begin Period Cash Flow | $ 369.3 M |
| Operating Cash Flow | $ 56.3 M | |
| Capital Expenditures | $ -12.11 M | |
| Change In Working Capital | $ -11.00 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -24.91 M | |
| End Period Cash Flow | $ 344.4 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 216.5 M | |
| Forward Revenue | $ 102.8 M | |
| COSTS | ||
| Cost Of Revenue | $ 88.6 M | |
| Depreciation | $ 11.7 M | |
| Depreciation and Amortization | $ 11.7 M | |
| Research and Development | $ 41.9 M | |
| Total Operating Expenses | $ 188.4 M | |
| PROFITABILITY | ||
| Gross Profit | $ 127.9 M | |
| EBITDA | $ 42.7 M | |
| EBIT | $ 31.0 M | |
| Operating Income | $ 28.1 M | |
| Interest Income | $ 3.3 M | |
| Interest Expense | $ 1.2 M | |
| Net Interest Income | $ 2.1 M | |
| Income Before Tax | $ 29.8 M | |
| Tax Provision | $ 3.1 M | |
| Tax Rate | 10.466 % | |
| Net Income | $ 26.6 M | |
| Net Income From Continuing Operations | $ 26.6 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.69 | |
| EPS Actual | $ 0.63 | |
| EPS Difference | $ -0.06 | |
| EPS Surprise | -8.696 % | |
| Forward EPS | $ 0.81 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.2 B | |
| Intangible Assets | $ 588.6 M | |
| Net Tangible Assets | $ 23.0 M | |
| Total Current Assets | $ 524.6 M | |
| Cash and Short-Term Investments | $ 378.9 M | |
| Cash | $ 342.3 M | |
| Net Receivables | $ 74.2 M | |
| Inventory | — | |
| Long-Term Investments | $ 3.1 M | |
| LIABILITIES | ||
| Accounts Payable | $ 10.3 M | |
| Short-Term Debt | $ 303.7 M | |
| Total Current Liabilities | $ 562.5 M | |
| Net Debt | — | |
| Total Debt | $ 343.9 M | |
| Total Liabilities | $ 634.7 M | |
| EQUITY | ||
| Total Equity | $ 611.7 M | |
| Retained Earnings | $ -585.58 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 9.76 | |
| Shares Outstanding | 62.665 M | |
| Revenue Per-Share | $ 3.45 | |
| VALUATION | Market Capitalization | $ 3.3 B |
| Enterprise Value | $ 3.3 B | |
| Enterprise Multiple | 76.419 | |
| Enterprise Multiple QoQ | -36.169 % | |
| Enterprise Multiple YoY | -69.368 % | |
| Enterprise Multiple IPRWA | high: 416.628 QTWO: 76.419 mean: 70.822 median: 60.198 low: -96.493 |
|
| EV/R | 15.072 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.038 | |
| Asset To Liability | 1.964 | |
| Debt To Capital | 0.36 | |
| Debt To Assets | 0.276 | |
| Debt To Assets QoQ | 1.542 % | |
| Debt To Assets YoY | -30.903 % | |
| Debt To Assets IPRWA | high: 0.624 QTWO: 0.276 mean: 0.158 median: 0.082 low: 0.005 |
|
| Debt To Equity | 0.562 | |
| Debt To Equity QoQ | 7.286 % | |
| Debt To Equity YoY | -43.108 % | |
| Debt To Equity IPRWA | high: 1.63 QTWO: 0.562 mean: 0.213 median: 0.137 low: -0.751 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 5.392 | |
| Price To Book QoQ | -15.509 % | |
| Price To Book YoY | -41.874 % | |
| Price To Book IPRWA | high: 25.147 mean: 8.603 median: 7.357 QTWO: 5.392 low: -15.249 |
|
| Price To Earnings (P/E) | 83.542 | |
| Price To Earnings QoQ | -15.61 % | |
| Price To Earnings YoY | -44.452 % | |
| Price To Earnings IPRWA | high: 424.635 mean: 105.52 QTWO: 83.542 median: 72.086 low: -13.79 |
|
| PE/G Ratio | -11.362 | |
| Price To Sales (P/S) | 15.234 | |
| Price To Sales QoQ | -24.898 % | |
| Price To Sales YoY | -42.878 % | |
| Price To Sales IPRWA | high: 85.311 median: 36.777 mean: 35.635 QTWO: 15.234 low: 0.499 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 70.039 | |
| Forward PE/G | -9.525 | |
| Forward P/S | 32.661 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 10.195 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.172 | |
| Asset Turnover Ratio QoQ | 11.41 % | |
| Asset Turnover Ratio YoY | 19.625 % | |
| Asset Turnover Ratio IPRWA | high: 0.364 QTWO: 0.172 mean: 0.122 median: 0.122 low: 0.015 |
|
| Receivables Turnover | 3.439 | |
| Receivables Turnover Ratio QoQ | 0.412 % | |
| Receivables Turnover Ratio YoY | -5.131 % | |
| Receivables Turnover Ratio IPRWA | QTWO: 3.439 high: 2.922 mean: 1.507 median: 1.422 low: 0.41 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 26.534 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 11.438 | |
| Cash Conversion Cycle Days QoQ | -9.142 % | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 137.562 QTWO: 11.438 mean: -44.967 median: -63.272 low: -170.532 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -5.71 | |
| CapEx To Revenue | -0.056 | |
| CapEx To Depreciation | -1.031 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 611.7 M | |
| Net Invested Capital | $ 915.4 M | |
| Invested Capital | $ 915.4 M | |
| Net Tangible Assets | $ 23.0 M | |
| Net Working Capital | $ -37.91 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.674 | |
| Current Ratio | 0.933 | |
| Current Ratio QoQ | -8.748 % | |
| Current Ratio YoY | -34.867 % | |
| Current Ratio IPRWA | high: 4.653 mean: 1.31 median: 1.283 QTWO: 0.933 low: 0.47 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 8.054 | |
| Cost Of Debt | 0.312 % | |
| Interest Coverage Ratio | 25.691 | |
| Interest Coverage Ratio QoQ | 45.224 % | |
| Interest Coverage Ratio YoY | 482.083 % | |
| Interest Coverage Ratio IPRWA | high: 174.292 median: 51.566 mean: 34.987 QTWO: 25.691 low: -144.283 |
|
| Operating Cash Flow Ratio | 0.01 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 15.096 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -2.345 % | |
| Revenue Growth | 3.978 % | |
| Revenue Growth QoQ | 23.12 % | |
| Revenue Growth YoY | 8.837 % | |
| Revenue Growth IPRWA | high: 17.025 % QTWO: 3.978 % mean: 3.186 % median: 1.985 % low: -14.742 % |
|
| Earnings Growth | -7.353 % | |
| Earnings Growth QoQ | -217.648 % | |
| Earnings Growth YoY | -291.186 % | |
| Earnings Growth IPRWA | high: 200.0 % mean: 2.904 % median: -5.0 % QTWO: -7.353 % low: -114.583 % |
|
| MARGINS | ||
| Gross Margin | 59.081 % | |
| Gross Margin QoQ | 6.71 % | |
| Gross Margin YoY | 10.998 % | |
| Gross Margin IPRWA | high: 91.518 % mean: 70.013 % median: 67.633 % QTWO: 59.081 % low: 37.318 % |
|
| EBIT Margin | 14.299 % | |
| EBIT Margin QoQ | 35.177 % | |
| EBIT Margin YoY | 300.42 % | |
| EBIT Margin IPRWA | high: 57.918 % median: 48.401 % mean: 38.688 % QTWO: 14.299 % low: -25.693 % |
|
| Return On Sales (ROS) | 12.991 % | |
| Return On Sales QoQ | 47.743 % | |
| Return On Sales YoY | 263.792 % | |
| Return On Sales IPRWA | high: 58.187 % median: 46.326 % mean: 36.927 % QTWO: 12.991 % low: -25.693 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 44.2 M | |
| Free Cash Flow Yield | 1.34 % | |
| Free Cash Flow Yield QoQ | 0.0 % | |
| Free Cash Flow Yield YoY | 79.144 % | |
| Free Cash Flow Yield IPRWA | high: 6.043 % QTWO: 1.34 % median: 0.518 % mean: 0.467 % low: -3.007 % |
|
| Free Cash Growth | -21.877 % | |
| Free Cash Growth QoQ | -142.137 % | |
| Free Cash Growth YoY | -917.526 % | |
| Free Cash Growth IPRWA | high: 233.063 % median: 168.667 % mean: 123.354 % QTWO: -21.877 % low: -389.093 % |
|
| Free Cash To Net Income | 1.66 | |
| Cash Flow Margin | 2.636 % | |
| Cash Flow To Earnings | 0.214 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 2.112 % | |
| Return On Assets QoQ | 39.59 % | |
| Return On Assets YoY | 488.301 % | |
| Return On Assets IPRWA | high: 6.683 % median: 4.675 % mean: 3.615 % QTWO: 2.112 % low: -9.825 % |
|
| Return On Capital Employed (ROCE) | 4.527 % | |
| Return On Equity (ROE) | 0.044 | |
| Return On Equity QoQ | 40.984 % | |
| Return On Equity YoY | 400.0 % | |
| Return On Equity IPRWA | high: 0.165 median: 0.077 mean: 0.067 QTWO: 0.044 low: -0.273 |
|
| DuPont ROE | 4.184 % | |
| Return On Invested Capital (ROIC) | 3.028 % | |
| Return On Invested Capital QoQ | 34.878 % | |
| Return On Invested Capital YoY | 411.486 % | |
| Return On Invested Capital IPRWA | high: 14.663 % median: 7.128 % mean: 5.643 % QTWO: 3.028 % low: -11.709 % |
|